Mitek is a company active in the fintech industry (financial technologies). It providesĀ mobile capture and identity verification software solutions for primarily for the financial sector. The company predicts 5 technology trends in the financial sector. We look at these 5 trends as well as theĀ chart and financials of fintech stock Mitek.
Trend 1:Ā More than 1 Billion Consumer Records Breached
Security practices based on traditional authentication methods like passwords are rapidly weakening as the number of breaches keeps on increasing. Miteks believes there will be more than one billion consumer records breached in 2017.
Trend 2: Mobile Deposit Saves Banks $1 Billion
With remote mobile deposit capture usage expected to grow globally, the technology will deliver more than $1 billion in savings through reduced operational costs for financial institutions in 2017.
Trend 3: Anti-Money Laundering Fines Pack a $5 Billion Punch
Anti-money laundering laws are gaining strength. Mmore than $5 billion in fines will be levied on financial institutions globally in 2017 due to these violations.
Trend 4: Millennials Move Mobile Mortgages Mainstream
Millennials represent 35 percent of all home buyers and research shows they have a strong desire to apply for mortgages via mobile. Millennials will originate more than $30 billion worth of mortgage applications through the mobile channel in 2017.
Trend 5: Selfies Used In $3 Billion Worth of Mobile Transactions
Recent research shows that there is an enormous unmet demand among Millennials for using selfies in mobile commerce. More than $3 billion mobile commerce transactions in 2017 will incorporate selfies for authorization or authentication.
Mitek – Fintech stockĀ with a great outlook
Although a lot has beenĀ said about fintech trends, for instance in this article on Fortune discussing the best fintech stocks, we do not see a lot of positive energy in that sector right now. Readers can check the charts of these companies: Lending Club (L), Verifone Systems (PAY), Square (SQ). Primarily the smaller companies, pure fintech players, are really not very bullish.
However, Mitek Systems (MITK) has a great setup, both in terms of chart and its market outlook. The chart below shows how it broke out in January of this year, and has tested its long term average recently. This fintech stock looks constructive at this point.
Mitek’sĀ financials of this company are promising. After a strong revenue growth, there was a stabilizationĀ in the last quarter. Profits went up sharply this year, but stabilized in the last quarter. Because of that, its P/E ratio is high, but its forward P/E looks very healthy, provided that the company can keep its promises.
Its market segment is booming, and weĀ believe this fintech stock will go much higher in the coming years.
