The RAIZ Invest Ltd (ASX: RZI) share price has been a strong performer in morning trade on Thursday.
At the time of writing the mobile-first financial services platform provider’s shares are up 4% to 91.5 cents.
This latest gain means that the company’s shares are now up an impressive 90% from 48 cents one year ago.
What is the Raiz share price charging higher?
Investors have been buying Raiz’s shares this morning after the release of an update on its funds under management (FUM).
According to the release, Raiz’s FUM climbed to $481.62 million at the end of January. This was an increase of 8.3% since the end of December and 79.1% on the prior corresponding period.
Retail FUM rose 7.8% month-on-month to $410.42 million and Superannuation FUM increased 11.1% month-on-month to $71.2 million.
This was driven partly by a 3.3% month-on-month increase in active customers to 218,635.
Raiz’s CEO George Lucas said: “It is particularly pleasing to report that the strong growth in both active customers and FUM that were delivered during the 2019 financial year, has continued into 2020. This strong growth demonstrates the strength of the Raiz business model that is underpinned by our vision to build a mobile-first financial services company in Australia and Southeast Asia.”
“During January there was a sharp increase in active customers using Raiz as an alternative vehicle for their savings as well as an increase in their average balances. In Australia our active customers grew by over 3% to 218,635 and our total FUM grew by 8.3% to $481.62 million; bringing us ever closer to the $500 million milestone. The 11.1% growth in Superannuation FUM to $71.2 million was also pleasing. These results reflect both improving market conditions and continued strong organic growth, with January traditionally being a good month for us,” he concluded.
The post Why this small cap ASX fintech share is shooting higher today appeared first on Motley Fool Australia.
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