Future FinTech Plans to Enter the Challenger Bank and Digital Payment Sector

Rhea-AI Summary

Future FinTech Group Inc. (NASDAQ: FTFT) announced plans to enter the challenger bank and digital payment sector, targeting markets in the ASEAN region, where many consumers are underserved. The company aims to establish cross-border payment channels between China and ASEAN countries through mergers and acquisitions. The annual digital payment market in ASEAN is estimated at $714 billion, significantly smaller than China's $42.85 trillion. FTFT seeks to leverage its technological capabilities to enhance customer banking experiences and provide returns to shareholders.

Positive

• Plans to enter the lucrative challenger bank and digital payment sector.
• Targeting ASEAN markets with unfulfilled demand for online financial services.
• Potential for significant growth in digital payments, valued at $714 billion in ASEAN.

Negative

• None.

BEIJING, Aug. 17, 2020 /PRNewswire/ -- Future FinTech Group Inc. (NASDAQ: FTFT) ("Future FinTech", "FTFT" or "the Company"), a leading blockchain e-commerce and financial technology company, today announced it plans to enter the challenger bank and digital payment sector.

Challenger banks are small, recently created retail banks that compete directly with the longer-established banks, sometimes by specializing in areas under served by the big traditional banks. The challenger banks distinguish themselves from the historic banks by modern financial technology practices, such as online-only operations without physical retail stores, which reduce the banking costs and avoid the complexities of traditional banking. In order to be defined as a "bank", it must be regulated by the banking regulatory authorities.

In recent years, challenger banks and third-party payment systems have grown rapidly worldwide, rising to the top of the financial services industry, with personalized banking services that have reinvented the customer experience. Countries around the globe have enforced lockdowns recently and have advised their citizens to socially distance during the COVID-19 pandemic leading to traditional physical banking services declining due to health and safety concerns. This has expedited innovation in financial banking industries.

FTFT has already recruited professionals from this industry, and has been in frequent contact with companies in this sector in Southeast Asia and Europe, in order to find M&A targets.

The countries of the Association of Southeast Asian Nations ("ASEAN") are the main target markets of FTFT, as half of the more than 300 million Internet users in ASEAN countries have not yet used online financial services. The annual digital payment in ASEAN is around RMB 5 trillion (approximately $714 billion)(Source:The Future of Southeast Asia's Digital Financial Services Industry), which is much smaller compared to nearly RMB300 trillion in mainland China (approximately $42.85 trillion)(Source:2019 China Mobile Payment Development Report). Economic and trade cooperation between China and ASEAN countries has accelerated recently with increasing trade volumes and progress being made in regional economic integration. The market for cross-border payments and other financial services have huge potential. FTFT plans to open up cross-border payment channels between China and ASEAN countries through merger and acquisition with companies that have existing challenger banking and digital payment technologies and through cooperation with China's WeChat and Alipay.

Mr. Shanchun Huang , CEO of FTFT, said, "ASEAN is a huge potential market for challenger banks. Under the leadership of our board of directors and management, we will build our competitive technology and business advantage in challenger banking and digital payment sector through our M&A strategy. Our goal is to turn FTFT into one of the leading financial technology companies in Asia, not only bringing a better banking experience to customers, but also bringing significant returns to our shareholders."

About Future FinTech Group Inc.

Future FinTech Group Inc. ("Future FinTech", "FTFT" or the "Company") is a leading blockchain e-commerce and financial technology company incorporated in Florida. The Company's operations include a blockchain-based online shopping mall platform, Chain Cloud Mall ("CCM"), a cross-border e-commerce platform (NONOGIRL), an incubator for blockchain based application projects and a digital payment system "DCON". The Company is also engaged in development of blockchain based e-Commerce technology as well as financial technology. For more information, please visit http://www.ftftex.com/.

Safe Harbor Statement

Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act. Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward-looking statements. You can identify these forward-looking statements through our use of words such as "may," "will," "anticipate," "assume," "should," "indicate," "would," "believe," "contemplate," "expect," "estimate," "continue," "plan," "point to," "project," "could," "intend," "target" and other similar words and expressions of the future.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties described in our annual report on Form 10-K for the year ended December 31, 2019 and our other reports and filings with SEC. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.

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SOURCE Future FinTech Group Inc.

FAQ

What is Future FinTech's plan regarding challenger banks?

Future FinTech plans to enter the challenger bank and digital payment sector, focusing on ASEAN markets.

How big is the digital payment market in ASEAN?

The annual digital payment market in ASEAN is approximately $714 billion.

What is FTFT's strategy for entering new markets?

FTFT intends to establish cross-border payment channels and seek mergers and acquisitions in the sector.

What is the significance of the ASEAN market for FTFT?

ASEAN represents a significant opportunity as many consumers have not yet used online financial services.

How does FTFT plan to differentiate itself in the banking sector?

FTFT aims to leverage modern financial technology to provide a better banking experience compared to traditional banks.