Virgin Money UK implementation complete, 9Spokes reports a stronger pipeline

Virgin Money UK implementation complete, 9Spokes reports a stronger pipeline

Launch of open data platform is seeing channel changes for Auckland-based 9Spokes.

Adrian Grant (9Spokes)

Adrian Grant (9Spokes)

Credit: Supplied

ASX-listed Kiwi fintech 9Spokes reported stronger revenue and lower cash burn in its September quarter, which also saw a major rollout for Virgin Money UK.

After some troubling times, operating receipts totaled $2.8 million, higher than forecast due to the early receipt of customer licence fees, along with the final payment of a Callaghan Innovation grant. 

Operating expenditure, meanwhile, was $3.5 million for the three months ending 30 September, in line with forecast and leaving net operating cash burn of $0.7 million, $1 million lower than expected.

9Spokes, which has developed a data platform called 9Spokes Open for businesses and financial institutions, forecast expected cash burn in the quarter to 31 December of $1.8 million, including one-off payments relating to the implementation of new CRM software and additional search engine optimisation costs.

A highlight of the quarter was the implementation of a platform for Virgin Money UK, deployment of which was scheduled for December quarter. 9Spokes also reported North American subscribers on its platform exceeded 200,000 businesses.

Three new app connections (Clearbooks, Constant Contact and Podium) were completed in the quarter while KashFlow, Pandle and Reckon had been added since. Work was also underway to connect Stripe and Square.

The company's sales pipeline of 34 active customer leads, including seven new leads initiated by partner Visa, was also looking stronger.

Business development activities continued to broaden following the launch of 9Spokes Open last month, appealing to different segments of the market. This in turn was changing the channels 9Spokes was using to build its brand and coverage. 

9Spokes Open, which the company touts as the next evolutionary phase of open banking, targets organisations needing access to consented financial and commerce data through a single API. 

"We are seeing good interest from prospective customers whose solutions and services can benefit from blending consented live data with loan origination and loan management use cases," 9Spokes reported.

“Within the next three years, we believe all credit origination and loan management will be assessed, approved and managed with the benefit of historical and predictive data," 9Spokes chief executive and co-founder Adrian Grant said at launch.

At the same time, the "connected consumer" was reshaping the tech landscape.

“They expect personalised experiences and for their data to be surfaced on demand and in ways that solve their specific situation and needs, Grant said.

Following the release of 9Spokes Open, the focus had been on a cash flow tool which will link working capital requirements and lending decisions with the new platform's capabilities. Release is scheduled for the current quarter.

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Tags App integrationopen bankingfintechs9Spokes



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