Kyckr shares rip higher after Commerzbank finds a business case for its regtech platform
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Shares in Kyckr (ASX:KYK) got a boost this morning, after the company landed a contract with another large bank.
The regtech company, which offers a know-your-customer (KYC) service by providing access to more than 200 company registries, has bounced off its crisis lows with some positive business updates in recent weeks.
Today it announced a 12-month agreement with Commerzbank, Germany’s second-largest bank — a deal expected to generate revenue of around $100,000.
The announcement saw Kyckr’s shares rip higher by more than 50 per cent to 10.5c.
That’s the highest level since late-January, but the stock is still off its 12-month high of 30c reached last September, following news that Wisetech CEO Richard White had become a cornerstone investor.
The deal with Commerzbank is something of a seal of approval from the German lender, which was previously using Kyckr’s Business Portal service on a monthly pay-as-you-go basis.
It follows a contract extension with US bank Citi in April, as Kyckr looks to maintain deal-flow during a significant period of upheaval for the financial services industry.
Accompanying the Commerzbank announcement, Kyckr said it booked $260k of revenue in April, up 39 per cent from April 2019 and a new monthly record.
CEO Ian Henderson said the result was evidence of “continued demand for Anti-Money Laundering (AML) and Countering Terrorist Finance (CTF) measures in the market”, despite the disruption from COVID-19.