Raiz optimistic about 2021 after ‘extremely challenging year’
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Fintech fund manager Raiz Invest (ASX:RZI) says it’s continuing to chip away at user-growth numbers, in its latest monthly report for the market this morning.
The company said active users edged higher by 1.6 per cent in December, to 343,573 (November: 317,963).
That growth was driven by the company’s south-east Asian expansion strategy into Indonesia and Malaysia, where monthly user growth rose by 20.6 per cent and 36.6 per cent respectively.
RZI’s Australian user-base edged higher by 1.6 per cent to 237,229.
Raiz operates an investment management platform, where users can pool their spare change into a savings fund and get exposure to simple investment products such as ETFs.
The company charges a flat monthly investment fee for each user, meaning the more active users it can bring onto its platform the more recurring revenue it can generate.
In the middle of last year, the company also launched an additional investment portfolio that offers investors exposure to Bitcoin.
Along with its user growth, Raiz also generated a 4.2 per cent increase in funds under management to $605.59m in the month of December.
Discussing the 8.1 per cent monthly growth rate in user numbers, CEO George Lucas highlighted the company’s momentum in its regional expansion strategy.
“Growth in Indonesia and Malaysia continue to exceed our targets, reinforcing our conviction that our long-term Southeast Asian strategy is correct,” Lucas said.
Shares in RZI edged higher in morning trade to around $1.
The stock climbed steadily through 2020 from post-pandemic lows of 30c, although it still hasn’t recouped falls from its June 2018 listing price of $1.80.
In Stockhead’s expert round of 2021 stock picks, Dean Fergie from Cyan Investment Management flagged the fintech stock as one of his top picks for the year ahead.
In his comments accompanying this morning’s announcement, Lucas called 2020 an “extremely challenging year” and said the company is well placed to continue its growth push into 2021.