logo-loader

9 Spokes clears path to pursue new global banking opportunities

Last updated: 18:05 23 Jul 2019 EDT, First published: 18:01 23 Jul 2019 EDT

a woman using a laptop
9 Spokes’ platform brings together key business data with core banking information

9 Spokes International Ltd (ASX:9SP) has concluded a variation to its agreement with Barclays Bank which removes exclusivity provisions from the contract.

The company entered into the agreement in November 2015 to provide white-labelled platform services to Barclays’ small business customers.

As part of the variation, the parties will no longer have an exclusive relationship, positioning 9 Spokes to pursue new opportunities in the UK banking industry.

The variation enables 9 Spokes to extend its services in the UK banking industry in which the company is well-positioned to underpin cash flow forecasts through access to enterprise contracts.

READ: 9 Spokes and Microsoft see significant user traction for Bank of New Zealand white-label deployment

Chief executive Adrian Grant said: “For us to truly scale our business and fully execute our growth strategy, we need to sign global banking clients with worldwide operations across all jurisdictions.

“Potential clients in our pipeline, who are global banking institutions, are seeking these global relationships.

“With the exclusivity provisions removed we are no longer precluded from these opportunities and we look forward to progressing these relationships.

“We are confident of converting a number of these global organisations with whom we are in discussion. We look forward to updating the market on progress in due course.”

 

The exclusivity provisions in the Barclays agreement have precluded 9 Spokes from progressing contracts with prospective global clients requiring provision of services to their UK customers.

9 Spokes is now in discussions with major banking and financial organisations outside of the UK seeking deployment of the 9 Spokes white-label platform across the jurisdictions they operate.

As a registered Open Banking Third-Party Provider (TPP), 9 Spokes can also now take advantage of opportunities to provide open banking services to UK CMA9 regulated Banks via the 9 Spokes direct platform in the UK.

These banks are now obliged under regulation to provide open banking services to their customers.

Barclays contract

The existing contract contains an adjustment for reduced revenue in the event of removal of the exclusivity clause and this will apply during the December quarter.

The current contract for white label platform services will expire in December. Ongoing discussions around alternative services which would extend into 2020 would be covered under a separate contract.

Poseidon Nickel signs binding agreement with Mineral Resources to divest...

Departing Poseidon Nickel Ltd (ASX:POS, OTC:PSDNF) CEO Craig Jones and incoming CEO Brendan Shalders join Proactive’s Jonathan Jackson to discuss the divestment of Lake Johnston to Mineral Resources Ltd (ASX:MIN). Jones, who has played a pivotal role in this strategic move, shared insights on...

25 minutes ago