Toronto, Ontario--(Newsfile Corp. - March 8, 2022) - Hank Payments Corp. (TSXV: HANK) ("Hank" or the "Company"), a North American financial technology company that uses powerful technology to automate the complexities of personal cash flow management on one centralized platform, is pleased to announce that an existing mid-west USA channel partner, with a network of 1500 mortgage brokers, has agreed to organically onboard a portfolio of 600 mortgages to the Hank platform representing growth of approximately USD$110,000,000 in Hank's Liabilities Under Management ("LUM") which is expected to exceed USD$1.3 Billion by the end of the March 2022 quarter.
In addition to Automotive loans and leases, Mortgages have been a new focus of Hank since 2021, due to their long-term stick rate and high margin processing fees. Mortgages will already represent approximately twenty percent of liabilities under management on completion of this migration over the coming weeks.
The company will immediately begin onboarding the portfolio, which is expected to be completed in March 2022. This transaction deepens its partnership with this strategic channel, and the parties continue other strategic discussions to expand the relationship further. Processing fees are expected to grow commensurate with existing market pricing, and the lifetime value of the mortgages is expected to be measured over five years on average, a material increase in customer term.
"I am very pleased that our partner has opted to migrate more business to our platform, further evidencing the long-term value these relationships provide to Hank, and Hank to the channel. I'm also pleased that the effort to migrate accounts on scale is nominal and will be completed efficiently by our team over the coming weeks.", noted Jeff Guthrie, President & COO Hank Payments.
About Hank Payments Corp.
Hank is a financial technology company. The Hank software platform (the "Hank Platform") acts as a consumer's financial concierge using a powerful technology to automate the complexities of personal cash flow management. Through its FDIC (Federal Deposit Insurance Corporation) insured bank partners in the United States, Hank helps consumers in every state find funds in their existing cash flow and speed up the retirement of liabilities. The Hank Platform debits consumers when they have cash, stores the cash with partner banks, then automatically instructs partner banks to pay bills and loans as they come due, and often sooner than required. Approximately half of Hank's customers are financially sound and use the Hank Platform for convenience, while the other half improve their payment performance through the use of the Hank Platform. One hundred percent of Hank's customers are in the USA and pay setup and ongoing monthly processing fees while remaining on the Hank Platform for an average of three years. Hank continues to innovate and anticipates launching more expansive features to its expected growing customer base that will provide greater visibility into their cash flow, credit performance, and viability to borrow or refinance at lower rates, including introducing Hank customers to interested lenders.
Forward-Looking Statements
This news release may contain forward-looking statements (within the meaning of applicable securities laws) which reflect the Company's current expectations regarding future events. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the future success of the Company's business.
The forward-looking statements in this news release are based on certain assumptions, including without limitation the Shares beginning trading on the TSXV. The forward-looking statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
FOR FURTHER INFORMATION PLEASE CONTACT:
For more information regarding Hank Payments Corp., please contact: Investor Relations, ir@hankpayments.com and visit the Company's website at www.hankpayments.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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