Credit Clear’s share price may rise on market expansion

ASX-listed fintech company Credit Clear could see its share price rise in hopes of expanding market share in its Australian territory.

The software company has just announced plans to triple its market share in Australia over the next three years, predicting a huge increase in revenue this year. expect.

Credit Clear has unveiled its three-year growth plan

Credit Clear’s three-year growth plan includes expanding its Australian credit delivery rate from the current 1.4% to 4 – 5%. at the end of the period.

With the debt collection sector in Australia estimated at $2.5 billion, Credit Clear expects this growth in market share to increase revenue to $100 million a year.

According to Credit Clear’s company presentation at its annual general meeting (AGM), this additional revenue will increase EBITDA by $25 – 30 million per year.

Credit Clear CEO Andrew Smith told Stockhead that its position as a technology leader in the market will help it achieve these growth objectives.

‘The first part of the plan is to grow the species,’ he said. ‘I think we are in a very strong position in terms of having a leading technology in this area, which will establish our organic growth.’

Smith said Credit Clear would also seek to drive market share growth by targeting large customers such as ASX 100 companies and ‘level one’ government agencies.

‘Our next target is the NRMA and IAG of the world,’ said Smith.

‘We need to show case studies in other markets such as the federal for example, where there are a lot of unpaid debts that are well publicized.’

Credit Clear currently has $35.7 million in revenue from approximately 1,000 clients and is adding clients at a clip of approximately 30 per each month. The company reported both profit and loss in the first quarter of fiscal year 2023.

Competition can be reduced if debt collection is maintained

Credit Clear believes trends in Australia’s debt collection sector favor its ambitions to expand market share.

According to the Credit Clear AGM presentation, the debt collection industry in Australia has experienced consolidation due to a wave of M&A, leaving it with fewer competitors.

Debt brokers are competing for a shrinking amount of available assets, while companies are selling less debt than before the Covid pandemic.

Credit Clear also believes that it will have an advantage compared to its peers, a fintech platform whose entire business is based on the use of new facilities.

According to Credit Clear, specialized credit providers provide ‘efforts and integration of technology with their own internal solutions.’

At the same time, digital-only companies have also struggled, because ‘customers don’t want standalone digital services.’

Credit Clear says its fintech innovations are unique

Credit Clear considers itself a technology-enabled platform that helps businesses manage smarter, faster and more innovative financial outcomes. by changing the way people manage their repayments.’

The company says it has created a new and unique area of ​​fintech innovation – ‘RepayTech’ – which involves digitizing and digitizing the use of bills to make it easier for people to pay back.

In addition to digital, Credit Clear’s platform also uses technical features such as digital and behavioral data to improve rate of repayment.

According to Credit Clear, a recent test involving the use of artificial intelligence helped generate a 35% increase for a high street operator.

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