The fintech has managed to clinch a new partnership with OFX Ltd. Cementing an agreement that will help this small-cap manage its foreign exchange services.
Investors were clearly pleased with the news too, sending shares 9.09% higher at time of writing.
Which certainly isn’t surprising, because with OFX’s help, Douugh may be able to win over many more users. A pivotal step towards their much larger goals.
Let’s talk details though…
Getting in on the investing boom
The reason for this FX deal is simple, Douugh is steadily positioning itself to become an investing platform. Using its recently acquired subsidiary ‘Goodments’ to quickly pivot into the recent boom in interest amongst younger investors.
With today’s partnership, though, the fintech plans to give Aussie users exposure to US markets. Along with the ‘bank-beating’ foreign exchange rates.
As Douugh’s CEO Andy Taylor comments:
‘We are delighted to announce this exciting partnership with OFX. They have invested a lot in building a robust platform to support fintech’s to build and integrate new customer offerings. FX will become a key component of our platform offering over time as we look to facilitate investing in US securities, not to mention helping customers move money around the world.’
It’s a key step towards Douugh’s global objectives. Which will no doubt help bring in plenty more names, as mentioned earlier.
Because at the end of the day, that is the biggest priority for Douugh right now.
They simply need to focus on bringing in as many users as possible. Users that they can then hopefully turn into loyal customers. Whether it be for banking, investing, or any other financial services the company pursues in future.
What’s next for the Douugh Share Price?
Beyond this latest deal, the immediate focus should still be the relaunch of Goodments. No doubt incorporating this FX agreement into their more aggressive investor push.
In doing so, they will likely be looking to position and brand this platform in a different light. Moving away from the more sustainable focus that Goodments started out with.
That may be a risk, but it is one that Douugh is banking on.
Hoping to win over young, money-hungry investors with a compelling offering. Only time will tell if this will translate into actual user growth though.
So, if you’re somewhat sceptical of Douugh’s plan, then it may not be the right stock for you.
Fortunately, when it comes to fintech stocks, there are plenty more to choose from. Giving small-cap investors, like yourself, plenty of options to put your capital towards.
And if you’re looking for ideas on where to begin, then our latest fintech report is the perfect place to start. Including three fintech stocks on the ASX right now that are worth taking a closer look at.
For Money Morning
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