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Monitise to Emphasize API, On-site Solutions in Strategy Shift

Monitise_homepage_July2015

Amid the revenue and profitability metrics in the recent trading update from U.K. mobile-banking innovator Monitise was news that the company would shift strategy from “purpose-built” platforms to standardized, cloud-based APIs in a bid to cut costs.

“We have been delighted with the API’s technical capability and the reception received from clients, which gives us donfidence for the future,” said Monitise CEO Elizabether Buse. Monitise launched its new API this spring.

The company’s trading update revealed that Monitise expects 2015 revenues to be between £88-90 million (below the £90-100 estimated back in the spring); reiterated its fiscal 2016 profitability targets with regards to EBITDA (earnings before interest, taxes, depreciation, and amortization); and noted that a “material reduction … in cash outflows” from the second half to the first half of the fiscal year suggests that the company will have the necessary “balance sheet strength” to bring Monitise to “break-even and beyond.”

Monitise has had a busy first half of 2015. The company announced partnerships with MoneyPass in January; with Turk Economy Bankasi (TEB) in April; and with IBM and Société Générale in May. This month, Monitise and Banco Santander announced their plan to launch a “fintech venture builder” program in the second half of 2015. Both companies have pledged up to 10 million pounds of capital to the project over the next two years.

A long-time Finovate alum, Monitise demoed its technology at the inaugural Finovate in 2007. Founded in 2003 and headquartered in London, U.K., Monitise trades on the London Stock Exchange under the symbol “MONI” and has a market capitalization of more than £200 million.