For those who are comparing Douugh to 86 400 and Xinja, have a...

For those who are comparing Douugh to 86 400 and Xinja, have a read through the investor preso here: https://hotcopper.com.au/threads/ann-douugh-asx-investor-presentation-october-2020.5673536/

There are differences in their approach and business model. Douugh is aiming to employ a subscription model vs. traditional (neo)banks. This allows them to extract more revenue per customer for the value provided. This allows Douugh to bring value-added services and features to customers which traditional neo(banks) would not be willing to, because they're not able to justify the cost of developing and servicing such a feature without charging customers for it. With a subscription model, you pay a certain amount a month and are able to get these additional features as well as future features when that's available.

Just like with Spotify, they have multiple competitors but none comes close to taking the crown because of the first-mover advantage and how much they've built up over time. We're valuing Douugh on the prospects of them having the first-mover advantage and building out their value-added services/features to make it compelling enough to the customers. It's a bold move which is why i'm not too concerned with how many customers they have atm, and how much revenue they're generating just yet.