(Alliance News) - Fiinu PLC on Thursday said it is on track to complete pilot testing of its Plugin Overdraft product in the first half of next year as it continues to "refresh" its approach to reflect market conditions.

Fiinu is a Surrey, England-based fintech company in the process of developing its bank-independent overdraft platform, Fiinu Bank, which will promote its Plugin Overdraft product. Plugin Overdraft gives consumers access to an overdraft without the need to switch banks and current accounts.

Since publishing its interim results in September, Fiinu said it has started the initial testing phase which will continue into the new year. It is on track to complete pilot testing in the first half of 2023.

Fiinu said it "continues to make encouraging progress with the recruitment of key staff". Charles Resnick has been approved by the regulators to perform the chief finance function, with effect from December 1.

The fintech firm said it has spent some time "refreshing its approach" to reflect the change in inflation and consumer appetite.

Fiinu's revised business plan incorporates the projected average cost of funding and interest rate of overdraft borrowing. The spread between these could result in an average net interest margin for Fiinu in excess of 15%, net of impairment.

In order to satisfy regulatory conditions, it will need to demonstrate it has "sufficient regulatory and working capital" to exit the mobilisation period.

Under Fiinu's refined plan, it now estimates a capital requirement of around GBP35 million to GBP40 million. This reflects the decision to run some processes in parallel to accelerate technology development during mobilisation and general cost inflation.

Shares in Fiinu were trading 2.0% lower at 12.50 pence each in London on Thursday afternoon.

By Chris Dorrell, Alliance News reporter

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