Why invest

DISRUPTION - STRATEGY - REVENUE

Disruptive

Based on award-winning wealth management technology, the Huddlestock Software as a Service (SaaS) solution meets the demands in a changing market for custody banking and equities trading. It is a scalable business model, and a perfect match with the current financial industry emphasis and development within wealth tech.

The custody banking market is changing from a commodity proposition to a knowledge provider. In addition to the pure banking activities, services must include:

Analytics (performance measurement, investment compliance monitoring)
Fund-related services (Compliance requirements, straight through processing, middle office, fund administration)
Knowledge provision and data management
Liquidity and risk management

Strategy

Huddlestock's strategic position is defined as:
A provider of proprietary technology and digital solutions to banks and other financial service companies
A technology and fintech partner for digitization of operations and launching of new and innovative products
A provider of a complete and fully integrated white label solution for the financial markets

Revenue and pipeline

Huddlestock Fintech targets strong growth over the medium to long term providing innovative products supporting the digitization of the wealth management industry. Main revenue streams for Huddlestock going forward will come from the Apex and Bedrock technology solutions.

From Apex, the Company will receive fees from custody banks depending on the volumes (AUCassets under custody, AUC) managed on the White Label platforms. The fee structure is defined in a scaling formula based on basis points per the AUC.

Pipeline:

The contract with BNP Paribas is an important industry validation of the Huddlestock Fintech technology and should make it easier to attract new potential clients for new contracts. BNP Paribas is expected to go live on the platform during the first quarter of 2021. The Group expects one to two custody bank solution (B2B) contracts per year going forward, at a slightly smaller size than that of BNP Paribas.

Target market:

Custody and securities service departments of global banks.

Secured contracts:

Huddlestock Group has signed a contract with BNP Paribas in Germany to digitize the interaction between BNP Paribas’ Custody division, Asset Managers and the Asset Manager’s clients through Qinfen by BNP Paribas, a white label product delivered by the CompanyHuddlestock. BNP Paribas is the European market leader within Custody Services for the Asset Management industry with EUR 9 trillion AUC (“Assets under Custody”).

From Bedrock, the Company will receive an agreed upon fee per transaction on the platform.

Target market:

Any company wanting to offer an online trading platform to its existing customers and users. Financial news portals, Online Banks and other online operators are potential clients.

Pipeline:

BNP Paribas is referring new connectivity prospects to the Group Huddlestock as it has established itself as wholesale resellers of their custody and brokerage solutions. The visibility in the market created by current contracts has attracted several potential customers and dialogues are ongoing. The Group expect four to six connectivity contracts per year going forward.

Secured contracts:

Huddlestock Asia Sdn Bhd has signed an agreement with MHX Group in in Malaysia to set up the joint venture Huddlestock Sdn Bhd which will offer the connectivity Bedrock connectivity solution in the Malaysian market.