By James Dunn from the Switzer Report m (writing about fintechs...

By James Dunn from the Switzer Report m (writing about fintechs for 2021)

4. Credit Intelligence (CI1, 3 cents)
Market capitalisation: $33 million
Three-year total return: 22% a year
Analysts’ consensus valuation: n/a

Lastly, the tiny Credit Intelligence (CI1) is a very interesting speculative fintech proposition – it is an “ethical” debt collection, restructuring, lending and insolvency management services business based in Hong Kong, but which has expanded into Australia through two recent acquisitions.

In June 2020, Credit Intelligence bought Australian debt negotiation business ChapterTwo, which provides informal debt negotiation to individuals in financial hardship due to unsecured debts (credit cards, personal loans and other credit). ChapterTwo strives to offer debt solutions to individuals without impacting their credit rating – as a bankruptcy does – and focuses on debt solutions that improve the individuals overall financial position and leads them on a path to financial freedom. Credit Intelligence followed this earlier this month by buying YOZO Finance, which runs an artificial intelligence (AI)-based financial management platform that helps small businesses in their debt management, lending and payment needs.

If BNPL debt is going to be a problem in Australia – the Australian Securities and Investments Commission (ASIC) has already flagged upcoming regulation for the BNPL sector, as one in five consumers miss payments – the services of a company like Credit Intelligence are going to be needed more. Despite its tiny size, the company is actually profitable and pays a dividend – but it its barely known.