Market Overview

A FinTech Leader Changing How Business is Done in the Financial Services Industry

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BEND, OR / ACCESSWIRE / January 31, 2017 / Cachet Financial Solutions, Inc. (OTCQB: CAFN) (Cachet Financial or the Company) is a leading FinTech provider of cloud-based, SaaS technology provider, serving the financial services industry with remote deposit capture (RDC), mobile money and prepaid card solutions. Cachet Financial was founded in 2010, and has rapidly grown into a technology leader and trusted partner of some of the world's largest and most respected financial entities.

Cachet Client Base

Source: Cachet Financial

Market Environment

The average U.S. household has a significant number of recurring bills on a monthly basis, with approximately 24% of U.S. adults not paying their bills on time, according to a 2015 study by the National Foundation for Credit Counseling. Paper-based transactions are expensive and time-consuming for both the biller and customer. As a result, mobile bill payment is becoming a preferred method for transactions, with 33% of U.S. Internet users paying their bills via a mobile device, as reported by eMarketer in March 2016. Significantly, 2015 marked the first time that mobile banking activity exceeded branch banking activity, with 97% of top financial institutions supporting remote deposit capture technology.

Source: Cachet Financial

Cachet Financial's product services have become an important element in meeting the growing demand of both financial institutions and their customers for mobile banking technology.

Key Components

According to Cachet Financial, their Mobile Money platform is enabled for growth by the following factors:

  • Current position as a leading provider of innovative prepaid mobile money and remote deposit capture platforms
  • Vast and growing mobile market opportunity
  • Award-winning Select Mobile Money mobile platform gaining significant traction in the fast-growing prepaid market
  • Current position as a trusted provider to 500+ financial services companies, including U.S. Bank, Navy Federal Credit Union, Ceretel, and Simple
  • Key relationships with Visa, MasterCard, Viamericas, Mitek, and CBKC
  • Highly scalable soft-as-a-service (SaaS) business model
  • Record revenue growth and growing pipeline
  • Management and Board with significant mobile, banking and technology expertise

Solutions

Cachet Financial's solutions are broken down into 4 categories: Remote Deposit Capture; Mobile Check Payment; Mobile Account Opening; and Prepaid Mobile Platform; providing a do-it-all platform for mobile money needs.

Remote Deposit
Capture

The Company's remote deposit capture (RDC) platform provides customers to submit images of checks to their financial institution for deposit, and supports PC, Mac and mobile device utilization. Cachet Financial's RDC platform represents to total solutions for financial services entities, incorporating a proprietary technology to help spot fraud, and supporting audit reporting for compliance requirements, among other features.

Source: Cachet Financial

Mobile Check Payment

Cachet Financial's mobile check payment platform allows users to scan a check image and submit for payment on loans and other recurring bills. Mobile pay platforms help reduce delinquencies by allowing consumers to make payments at any time, from any location, even at the last minute. In addition to enhancing customers' experiences, servicing costs are lowered and new fee income is generated for financial service entities.

Mobile Account
Opening

Cachet Financial's mobile account opening platform provides an alternative to the often cumbersome and time-consuming activity of opening an account at a financial institution. The Company's platform allows customers to scan their driver's license, state ID or Passport with their mobile device, with the system documenting and auto populating the required fields. In addition to making the experience more efficient, it reduces the number of errors in the entering of information. With mobile account opening representing 60% of the growth in the number of new accounts between 2013 and 2014, the Company's mobile account opening technology represents a major improvement to the traditional method of opening an account.

Prepaid Mobile
Platform

The Company's prepaid mobile platform enables the linking of mobile banking features with prepaid debit cards, allowing users to manage their card accounts and access other financial services. Prepaid cards are attractive to several segments of our society, specifically: Millennials, the Unbanked, and the Underbanked.

  • Approximately 75.4 million Millennials (ages 18-32) are mobile-savvy and generally don't care about banks, bank accounts or "human" service
  • The unbanked are the~16.7 million U.S. adults who have no relationship with a bank or credit union
  • Underbanked describes those adults with limited banking relationships, estimated at 50.9 million U.S. adults

For those individuals in the segments listed above, prepaid cards are becoming an attractive alternative to traditional banking services, with MasterCard predicting $822 billion in prepaid spend worldwide and a $412 billion U.S. spend in 2017. Cachet Financial is positioned to make money on their prepaid platform by charging upfront implementation and integration fees, along with professional services fees, monthly hosting & maintenance fees, and transaction fees, among others.

Source: Cachet Financial

Summary

Cachet Financial (CAFN) is an established and growing leader in providing mobile financial solutions to the financial services industry. We believe that upon your personal due-diligence, you will agree that the Company's leadership and innovative technologies have the Company well positioned to capitalize on the rapidly growing mobile money space, making CAFN an attractive investment opportunity.

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SOURCE: Sylva International, LLC

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