To your statement re being a loan processing app - yes that's probably all it is. Limited lending booking without much history. Formed in 2018 and has 5 staff. I've got no issue with the acquisition but to be blunt it's simply not really meaningful at this time. The strategy is fine, although i'd prefer the focussed more on the insolvency management and debt restructuring side of the business which attracted me in the first instance.
Hard to say what segment they are targeting. It would be an error to infer they will attract only the poor credit customers. Banks are notoriously slow, and bound in red tape around their lending products, applications and user interfaces so it wouldn't be hugely surprising if they went with Yozo. To this point, Afterpay's success has been due to developing and delivering a product that already existed, but in a way that was easy both in application and in user interface (on both buyer and retailer).
Most important is this - there is no evidence to suggest Yozo are anything but a slick marketing campaign. As with the CH2 acquisition, we need to see performance over multiple quarters before we can start considering the long term impacts of the acquisition. For now im happy as a shareholder with the years performance but eagerly await the Q1 update.
CI1 Price at posting:
2.8¢ Sentiment: Hold Disclosure: Held
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