Industry veteran appointed CEO, US$2.62M raised via placement and option to acquire Ivy Entities
4 July 2018: US-based, Change Financial Limited (ASX: CCA, OTCQX: CNGFF) (Change Financial or the Company) is pleased to announce the appointment of a new CEO, that it has received commitments to raise US$2.62M and that it has acquired a call option from Elmoson Pty Ltd (Elmoson) to purchase the remaining 67% interests in Ivy Koin LLC (Delaware registered) and Ivy Blockchain Pty Ltd (the Ivy Entities) that it does not currently own (the Ivy Option).
Appointment of New CEO
Eric Bachman will take on the CEO role on 1 August 2018, reporting to the Board of Directors, to accelerate Change Financial’s enterprise and monetisation strategy. Mr. Shilkin will step aside as Managing Director on 1 August 2018 but will remain on the Board as an Executive Director. He will assist Mr. Bachman transition to the role of CEO and will focus on business development and the assessment of new strategic initiatives. All other terms of Mr. Shilkin’s employment will remain the same.
With the support of key management and the board who bring relevant experience from senior positions at previous employers such as Westpac, PayPal, Goldman Sachs, Yahoo, and Deloitte, Mr. Shilkin has carefully positioned Change Financial to enter this new phase of growth. The Company believes that it is now an opportune time for an experienced fin-tech veteran with a proven track record of success to lead Change Financial into the execution phase of its monetisation strategy and to enter the broader market.
Eric Bachman is an institutional payments veteran with over 30 years in banking, payments, and building new companies. He has operated businesses in the payment card issuing and acquiring spaces, transaction processing business, and the mortgage lending and insurance spaces. In each of these areas, he’s consistently delivered strong growth and profitability, and has built and managed exceptional teams.
Mr. Bachman’s experience reaches across key brands, such as Wells Fargo, US Bank, Visa, BankServ and NextCard. He was part of the team that built and launched Marqeta’s leading payment card issuing and processing services and analytics platform.
Marqeta, whose platform powers prepaid debit and credit cards, has been able to ride the wave of growth in the multi-trillion dollar payments market. The company has racked up clients including Square Inc., Affirm Inc., Kabbage Inc. and Alipay since its founding in 2010. Marqeta also has partnerships with large networks like Visa Inc., MasterCard Inc. and Discover Financial Services. The company’s platform allows users to build cards and payment systems for themselves, which can mean creating customized virtual cards for suppliers and employees, and completing online point-of-sale transactions. For example, Instacart can give contractors a debit card issued by Marqeta to pay for goods purchased in store. And Alipay can use the company to let Chinese consumers instantly pay with their Alipay accounts when shopping in the U.S
As COO at Marqeta, his focus was on creating the infrastructure, partnerships, and processes that allowed the company to commercialise its processing technology and turn the innovative fintech into a $545 million company that serves multiple financial institutions and many of the most recognised service, technology, and financial technology companies. Most recently, Mr. Bachman was an Entrepreneur in Residence at BBVA, a global leader in fintech innovation and investments, helping the bank develop new businesses and investments in a number of blockchain opportunities for the New Digital Businesses group.
Mr. Bachman has also managed numerous corporate transactions, including more than a dozen company or portfolio acquisitions and integrations, along with helping to raise over $250 million in funding from private investors, VCs, and private equity. Moreover, his experience working closely with regulators to steer companies in different industries through regulatory hurdles will be crucial for Change Financial.
Mr. Bachman’s interest in joining Change Financial centers on the opportunity he sees within the company. “By leveraging Change’s strong team and its unique combination of technologies, we’ll bring totally new capabilities to the payments industry.” Eric Bachman stated that: “I’m excited to have the chance to define the path to growth and take the company to profitability. I look forward to taking each of the company’s technologies to market and to leveraging the company’s strengths in order to deliver unique and much needed products.”
The key terms of Mr. Bachman’s employment as Chief Executive Officer are set out in the Appendix.
About Change Financial
Change Financial Limited (ASX:CCA, OTCQX: CNGFF) is a U.S-based award-winning fintech, banking software, and blockchain investment company consisting of three core business units: Consumer, Enterprise and Blockchain.
The Consumer unit is underpinned by ChimpChange, the Company’s award-winning digital bank account and mobile app. ChimpChange makes free retail banking available to Americans who typically pay fees in order to have a bank account and provides money management tools to help its customers – the majority of which are millennials – make better financial decisions.
The Enterprise unit provides a turn-key, MasterCard certified Software-as-a-Service solution for U.S banks which is PCI compliant and capable of authenticating transactions.
The Blockchain unit pursues value-accretive investments in the burgeoning blockchain space. Change Financial has invested in Ivy, a blockchain-based cryptocurrency that comes embedded with significant Know Your Transaction (KYT) and Know Your Customer (KYC) information to encourage the use of cryptocurrency in traditional banks and financial institutions.
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