Just starting up a new thread for people looking to invest into NOV.
Novatti provides transaction processing services for remittances, cash vouchers and bill payments through the acquisition of cash-flow-positive companies and is currently awaiting their APRA bank licence to become a neobank.
Neobanks are fully digital banks that leverage technology to provide a digital, low cost option to the traditional brick and mortar banks. This allows them to achieve high market valuations due to their popularity with millennials and ease of use.
Novatti is currently valued at around $60M (26.5c), in comparison to:
Douugh (ASX: DOU); $321M (Peak)
Xinja: $433M (Prior to closure)
Judo: $1.6B
These market valuations are only a small part of the multi-billion dollar market that is neobanks.
Novatti is currently awaiting the issuance of its banking licence, the timeline is below.
22/11/2018NOV applied for RADI licence.
APRA takes 3-18 months to approve according to website.
09/04/20206 month hold on applications due to COVID-19.
11/08/2020Licencing expected to start in March 2021.
22/05/2021Latest date for approval according to APRA timeframes.
Novatti has business agreements with Freight Lounge, IncentiaPay (ASX: INP), RentPay (ASX: RNT), Emersion (due for
US Launch Q3 FY21), Decta Limited, Marqeta, SalesForce, Oracle, and ConnectWise.
Novatti also has a Principle issuer Licence with VISA whereby it can issue cards in both Australia and New Zealand. It also provides SaaS and is integrated with payment options including: GooglePay, ApplePay, SamsungPay, WeChat Wallet, AliPay, UnionPay, JD Pay, Baidau Wallet and TiENPAY.
Notable bank agreements have been made with 19 Chinese banks as well as ANZ, NAB, KOTAK, Bank of Shanghai and Banque Bemo Saudi Fransi (BBSF). Crypto/blockchain services have also been achieved with Ripple, The Stellar Network, IBM World Wire Network and Gingkoo Financial Technology.
Novatti has numerous subsidiaries that provide reoccurring revenue to the business, seen in the chart below:
Novatti has $11M cash on had with zero debt, $2.3B of managed transactions with $3.56M in revenue increasing 46% year on year (Ann: 30/10/2020)
There is a lot to like about NOV and a lot of potential for shareholder growth in the next 12 months, especially with top-tier partnerships, reoccurring revenue and the banking licence just around the corner.
GLTAH and remember to DYOR.
