Financial Data and Key Metrics Changes - The Bancorp reported earnings of $1.28 per share for Q4 2025, reflecting an 11% year-over-year growth in EPS [4] - GDV (Gross Deposit Volume) increased by 16% in Q4 compared to the prior year, with a total annual growth of 17% in 2025 [4][5] - Revenue growth for the quarter was 3% year-over-year, excluding credit enhancement income [4] Business Line Data and Key Metrics Changes - Credit sponsorship balances reached $1.1 billion, up 40% from Q3 and 142% year-over-year [5] - Consumer fintech loans increased by $644 million, now constituting 15% of the total loan portfolio, which grew to $7.26 billion [8] - Non-interest income, excluding credit enhancement, accounted for over 30% of revenue in the quarter, with approximately 90% of fees coming from the fintech business [9] Market Data and Key Metrics Changes - Average deposits in Q4 were $7.6 billion, with an average cost of 177 basis points [9] - Criticized assets decreased from $268 million to $194 million, a 28% decline quarter-over-quarter [6] - Delinquency rates improved from 2.19% to 1.6% of loans from Q3 to Q4 [6] Company Strategy and Development Direction - The Bancorp is focused on three main fintech initiatives aimed at creating significant shareholder value, including credit sponsorship, embedded finance platform development, and new program implementations [5] - The company is targeting a 2026 EPS guidance of $5.90, with a preliminary 2027 guidance of $8.25, which includes stock buybacks [12] - The strategy emphasizes optimizing funding costs and increasing revenue through off-balance sheet deposits and fintech partnerships [22][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the EPS targets for 2026 and 2027, citing strong tax season expectations and ongoing fintech initiatives [20][21] - The impact of the government shutdown on GDV was noted, but management does not foresee it affecting Q1 2026 significantly [20] - The company is optimistic about the growth of credit sponsorship and the overall fintech business, expecting substantial improvements in financial metrics [5][9] Other Important Information - Non-interest expense for Q4 was $56.2 million, which included $2 million from a legal settlement [10] - The Bancorp repurchased $150 million of its stock in Q4, totaling $375 million for the year [11] Q&A Session Summary Question: Can you provide more details on the EPS ramp and revenue drivers? - Management highlighted large revenue opportunities and confidence in upcoming announcements regarding credit sponsorship and the embedded finance platform [15][16] Question: What were the primary drivers affecting Q4 results? - Key drivers included legal fees, the unexpected duration of the government shutdown, and the timing of credit sponsorship growth [18][19] Question: What is the plan for off-balance sheet deposits? - The company expects to continue generating deposit growth while optimizing the mix of on and off-balance sheet deposits to enhance earnings [22][39] Question: Can you discuss the refinancing of REBL loans? - Some refinancings were with new partners, and the existing properties are in stronger positions than when originated, with lower interest rates due to the current environment [29] Question: How does the company view the threat of fintechs obtaining bank charters? - Management believes many partners will not seek licenses and emphasizes the scalability and low-cost benefits of their platform [36][38]

India-based Knight FinTech, a technology provider to banks and financial institutions, has raised $23.6m in a Series A funding round led by Accel. The round included participation from IIFL and Rocket Capital, while existing investors such as Prime Venture Partners, 3One4 Capital, Commerce VC and Trifecta Capital also joined. Knight FinTech said the funding brings its total capital raised to $30m. Mumbai-headquartered Knight FinTech was founded in 2019. As a banking and digital lending infrastructure p ...

Financial Data and Key Metrics Changes - The Bancorp reported earnings per share (EPS) of $1.18, with revenue growth of 7% excluding consumer fintech loan credit enhancement income and expense growth of 6% [4] - EPS growth was 13% year over year, while fintech gross dollar volume (GDV) grew at 16% [4] - Non-interest income for Q3 2025 was $40.6 million, a 27% increase from Q3 2024, primarily driven by fintech fees [10] Business Line Data and Key Metrics Changes - Credit sponsorship balances reached $785 million, up 15% from Q2 and 180% year over year [4] - Non-interest expense for Q3 2025 was $56.4 million, a 6% increase from Q3 2024, with salaries and benefits rising by 10% [11] - The provision for credit losses on non-consumer fintech loans was $5.8 million, with $4.8 million related to the leasing portfolio [10] Market Data and Key Metrics Changes - Average FinTech Solutions deposits increased by 10% to $7.3 billion from $6.6 billion in Q3 2024 [11] - The company expects to see a ramp-up in deposits in Q4, traditionally a strong period due to tax season [18] Company Strategy and Development Direction - The Bancorp is focusing on three main fintech initiatives, including credit sponsorship, embedded finance platform development, and new program implementations, with expected revenue from Cash App in Q1 2026 [4][8] - The company is restructuring its institutional banking business to achieve a $7 EPS run rate by Q4 2026, which includes a headcount reduction and a projected $8 million reduction in run rate expenses [5][8] - The implementation of AI-powered tools is expected to enhance efficiency and productivity, with a $300,000 investment anticipated to save approximately $1.5 million in run rate expenses over time [6][7] Management's Comments on Operating Environment and Future Outlook - Management lowered guidance to $5.10 EPS for 2025 due to lower projected balances in traditional lending and increased credit provisions [8] - The company is confident in achieving a minimum $7 EPS run rate by the end of 2026 and is initiating preliminary guidance for 2027 at $8.25 EPS [8] - Management noted that the economic environment remains stable, with no significant stress observed in consumer spending [32] Other Important Information - The company is making progress in reducing criticized and substandard assets, which declined from $216 million to $185 million, a 14% decrease quarter over quarter [5] - The company is focused on managing deposits off the balance sheet to avoid volatility [18] Q&A Session Summary Question: Update on Square and Cash App program - Revenue from Cash App is expected in Q1 2026, with substantial fee revenue anticipated in the latter half of 2026 [13] Question: Update on the $27 million rebel loan - The loan is expected to close within the next five days [14] Question: Discussions with borrowers and new sponsors - The company is optimistic about progress in the fourth quarter and expects to resolve many criticized assets [16] Question: Deposits movement - Deposits fluctuate seasonally, but the company expects growth in Q4 [18] Question: Update on Aubrey property leasing - The property is being leased up, with ongoing refurbishments and interest from potential buyers [21] Question: Share repurchases in guidance - The 2025 guidance includes share repurchases, with a focus on achieving a $7 EPS run rate [25] Question: Trends in fintech fees - Year-over-year metrics are more reliable due to volatility in quarterly results [28] Question: Health of the consumer - No significant stress observed, with spending remaining stable [32] Question: Loan delinquency data - Some delinquency will be resolved with upcoming loan sales, and a decrease in past due loans is expected in Q4 [34] Question: Charge-off rates in consumer fintech loans - Charge-offs are primarily related to the partnership with Chime, which has its own strategies for managing losses [35] Question: Regulatory expectations for banking-as-a-service - The regulatory environment remains stable, with no significant changes impacting operations [44]

Core Insights - MoneyLion emphasizes the link between financial well-being and overall health, noting that 66% of Americans experience physical symptoms due to financial stress [2][3] - The company encourages Americans to adopt financial fitness habits as nearly 90% consider it as vital as physical fitness [1][3] Financial Health Statistics - 66% of U.S. adults report physical symptoms from financial stress, with 40% experiencing trouble sleeping and 37% suffering from headaches [2] - 67% of Americans state that inflation has negatively impacted their physical or mental health, with 38% citing increased stress and 36% heightened anxiety [2] Recommended Financial Habits - MoneyLion suggests five practical steps to enhance financial fitness by 2026: 1. Practice "No-Spend Days" to identify spending habits and save [6] 2. Schedule monthly "money dates" to treat finances like a committed relationship [6] 3. Check credit scores monthly and automate at least one bill for simplicity [6] 4. Review subscriptions every three months to improve cash flow [6] 5. Establish an emergency fund covering 3-6 months of living expenses and consider a small "flex fund" for low-stakes experiments [6] Company Overview - MoneyLion is a leading financial technology platform and part of Gen (NASDAQ: GEN), focused on empowering consumers with personalized financial products and services [5]