It’s been a wild ride for Douugh Ltd [ASX:DOU] shareholders since their IPO in October.
The tiny neobank quickly stormed the ASX, riding high on the back of the Afterpay wave.
But, maintaining that wave has proved difficult…
From all-time high of 49 cents late last year, the Douugh Ltd shares has fallen to just 10 cents at the time of writing. Which is an improvement of 10.53% on yesterday’s closing price.
So could today’s uptick be the beginning of a bigger break higher?
New US partner provides ATM connection
Douugh announced this morning that it has MoneyPass. A surcharge-free payment network that is provided by Fiserv, a US$76.9 billion financial services juggernaut.
As such, Douugh will now gain access to 37,000 surcharge-free ATMs in the US. Which will enable the upstart neobank to allow its own users to make use of these machines to withdraw cash.
A relatively mundane process for a regular bank, but one that could help improve Douugh’s user experience.
CEO and founder Andy Taylor was certainly upbeat about the news:
‘We are delighted to be partnering with Fiserv to offer this service to Douugh customers, we are constantly looking for ways to improve the overall value of the Douugh banking service and customer experience, as we seek to convince customers to make Douugh their primary checking account.’
Indeed, it is that ‘convincing’ that has proved to be the crux of this stock’s fortunes. With a need to engage and win over as many users as possible.
As Douugh recently revealed in an investor presentation, customer growth was up 259% in Q3. Which, while an impressive stat, is somewhat deceptive as the figures themselves are coming from such a low base.
Just 10,877 people are registered as Douugh users as of 31 March.
Which is fine for a company that is still finding its operational footing. But not for one that saw a more than fivefold increase from its IPO price at one point.
Suffice to say, customer growth is the biggest reason for Douugh’s share price movements. Both up and down.
So hopefully this new ATM network will help attract some more names.
What’s next for Douugh Share Price?
Looking ahead, the next big development for Douugh is its AU relaunch. A project that will intertwine its recent acquisition of Goodments, which you can read about here.
Apparently, management plans to rebrand around a new ‘FX based commercial agreement’. Moving away from the ‘sustainability focus’ that Goodments had.
Again, this is all in the name of acquiring new customers.
That’s why shareholders will want to keep a close eye on how this relaunch unfolds. Because it just might be their best chance yet to deliver some serious user growth.
In the meantime, if you’re keen on investing in promising fintech stocks, check out our latest report. Including three companies that every small-cap investor should have on their watchlist.
Regards,
Ryan Clarkson-Ledward,
For Money Morning
PS: The Next Afterpay? Discover three promising Aussie fintechs that are currently trading below $1. Click here to learn more.
