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Fiinu PLC shares rose on Friday, as the company said it remains focused on raising capital ahead of a UK banking licence reapplication.
Shares in the Weybridge, England-based digital bank were up 14% at 0.74 pence each in London at midday on Friday.
In September, the company announced that David Hopton, Jerry Loy, Huw Evans and Chris Sweeney would step down from the board on Sunday December 31.
David Hopton has since agreed to stay on as a Non-Executive Chairman, but will defer his remuneration as Fiinu attempts to improve its capital position.
Hopton said that the board changes are being made ‘to reduce ongoing costs to preserve cash’. The company said its focus remains on raising the required capital to re-apply for a banking licence for its subsidiary Fiinu 2.
Fiinu 2 had its licence withdrawn in July, and the group now requires between £35.0 million and £42.0 million for the reapplication process.
The group said that the licence is necessary for the launch of its Plugin Overdraft product, a household budget management tool which allows customers to secure an overdraft without changing their existing bank.
The group also said that the re-application will require a hiring process ‘to ensure the required level of technological and regulatory readiness’, though it is currently unable to provide a timeframe for this.
Fiinu Chair David Hopton said: ‘Although, in the current economic climate, the directors believe there is a definite need for the Plugin Overdraft to support customers with their credit needs, funding conditions have remained challenging for businesses at the pre-revenue stage such as Fiinu’.
‘In such conditions, the board have had to take some difficult decisions to preserve cash and to give the company every chance to source the additional funding required for it to re-apply to the regulators to re-commence the banking licence application for Fiinu 2 Limited’, he continued.
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