Within months of its acquisition of share trading app Goodments, AI-powered neobank Douugh (ASX: DOU) has announced a strategic partnership with OFX (ASX: OFX) to improve foreign exchange services on the recently incorporated platform.
Under the deal with OFX - formerly known as OzForex - Douugh's Australian customers will pay a foreign exchange (FX) fee when they trade in US shares, and OFX will pay a portion of this fee back to Douugh in the form of a revenue share.
The new partnership will commence immediately with an initial three-year period, unless the company opts to terminate the deal with 90 days' notice.
Douugh founder and CEO Andy Taylor says the company is delighted to announce this exciting partnership with OFX.
"They have invested a lot in building a robust platform to support fintechs to build and integrate new customer offerings," Taylor says.
"FX will become a key component of our platform offering over time as we look to facilitate investing in US securities, not to mention helping customers move money around the world."
OFX's Asia-Pacific president Yung Ngo says international investment, particularly equities, has been a growing market for the company, so he is excited to be partnering with an organisation like Douugh that focuses on making financial wellness acceptable and understood.
"Australians have long had a keen eye for international opportunities so the alliance between OFX and Douugh better enables this."
Douugh believes the deal is material because of the new revenue line it presents, and expects a strong uptake once the 'Goodments by Douugh' app is launched.
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support