Bancorp Founding Family Jumps onto Fintech Bandwagon with $100 Million Blank Check IPO

Bancorp Inc. founder Betsy Cohen and her son Daniel Cohen are launching their newest venture with the "Blank Check" IPO of Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term Acquisition Corp. Formerly the CEO of Bancorp, Daniel Cohen becomes the CEO of FinTech Acquisition. His mother will hold the chairman of the board position after also having held the position of CEO of Bancorp, which she stepped down from in December 2014.

A blank-check IPO, FinTech Acquisition comes to market with no existing business but is selling $100 million worth of stock in a deal underwritten by Cantor Fitzgerald. According to the SEC filing, proceeds of the deal will be used for the “purpose of acquiring or merging with one or more businesses or entities in the financial technology industry.”

In its SEC filing, Fintech Acquisition didn’t provide much in the way of details in terms of potential companies they plan to purchase, other than that their goal is to take a complete 100% equity stake in any acquired asset. However, acquisitions are expected to be realized by leveraging the Cohens and their CFO James McEntee’s combined banking skills and existing “network of contacts.” However, the IPO prospectus does warn that its leading managers are also involved with other businesses and aren’t guaranteeing significant time to spend in the running of FinTech Acquisition Corp.

Both serial founders, Betsy and David Cohen have been involved with the creation of numerous financial firms including banks, asset managers and real estate funds, with several of the businesses having been rolled up into each other. As a result of their past involvement with Bancorp, FinTech Acquisition appears to be the Cohen family’s latest project to intertwine their numerous businesses. The naming of the company follows a record breaking year for fintech related investments, which could be a partial driver in why financial technology was chosen as the business of choice for the new venture.

A fintech-focused IPO, the proceeds of the blank-check deal could conceivably be used to acquire a fledgling financial technology firm on the cheap. In such a scenario, the Cohens would be able to Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term their existing contacts and banking experience to increase the acquired firm’s fortunes as they introduce their technology to banks such as Bancorp.