Have read through the micro cap presentation and the recent quarterly, both sounded extremely bullish and I believe with the valuation placed on ISX this company could potentially become the next fintech unicorn.
Run the numbers on $5k a month (they state it ranges from 5k-50k) for license fees on even just 100 banks globally and you end up with $6mil in revenues annually (figure margins would be pretty decent given it is a software tech). These numbers get even more eye watering with even just 1000 banks, in time their market could easily be more than 100 banks throughout the world.
This is just using the lowest number they have given, sign up bigger clients (such as HSBC, who are already using the platform and extending to a renewed 5 year contract) and surely the case is there for more than 100 banks to sign up given this is a global change and there is more than $9trillion in locked up cashflow due to missing information. What we have here is a solution to this and to solve that deadlock in cashflow, what banks wouldn’t want this?
they also mention the ability to improve profitability of banks by 5-10%, In a world of lowering interest rates if ID8 can improve margins by this much why wouldn’t a bank take this opportunity?
signing up with symphony is likely just the beginning of ID8 adoption and I’m excited to see what other banks will be joining up. Given Australia will be moving to an open banking system in less than a few months I’m sure many of the big banks locally will be interested in this tech, having been validated by the ACCC recently and soon after trials applying for accreditation will mean ID8 will be one of only ten Aussie fintechs to have this.
Highly recommend a read of the microcap presentation and look at what they are spelling out to you, this is a global change happening Behind the scenes and it will be happening from 2020 (only 1 month away).
Also good to see a director topping up ~$23k around these prices last month.
