ASX fintechs have had a spectacular 2020; here are the biggest winners
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ASX fintechs have been climbing for some years now off the back of increased adoption, but growth has particularly accelerated in 2020.
One fintech executive, David Laird – currently CEO at Modul8 which provides digital services such as card issuance capability to fintechs – told Stockhead this had been for varying reasons.
These range from open banking formally commencing on July 1 – making it easier to switch providers – to consumers seeking to take their lives in another direction and requiring finance to make it happen, and even the fall in physical cash use.
“We’re seeing from a payment perspective there’s huge development going into fintech now,” he said.
“Open banking is a real enabler for allowing fintechs to play into the space and trying to take market share.
“We’re seeing massive demand for digital payments and non-cash ways of doing things and I think it’s been a massive blessing for the fintech sector.”
Among listed companies, the average gain in 2020 is 54 per cent.
The top gaining ASX fintech is Douugh (ASX:DOU) which is a wealth management platform.
It is sitting on a 450 per cent gain in 12 months having entered the ASX earlier this month through the reverse takeover of Ziptel (ASX:ZIP).
The odd one out is Integrated Payment Technologies (ASX:IP1).
Both stocks and other ASX lenders fell in March with the onset of COVID-19 restrictions as investors feared the potential for a rise in bad dents and consumer spending potentially plunging.
More than six months on however, it turns out these fears were unfounded as many lending stocks reported higher lending volumes and profits.
One other top performer, B2B ASX fintech 9Spokes (ASX:9SP), has dashboard management solution to its clients and their customers.
This company has particularly surged since June when it announced a reseller agreement with Visa.