Merger launches new market player in FI
Businesses with high funds-under-management (FUM) and no platform are buying new platforms with growing distribution networks to serve retail customers, financial planners and the middle market looking to invest in large cash balances, thanks to a merger between Trustees Australia and fintech enabler, Cashwerkz.
The combined business would see those who needed a term deposit or cash related product able to access the new marketplace for cash, which Adock Private Equity, the company behind Cashwerkz, chairman, Brooke Adcock, said would significantly streamline and improve services.
Adcock said that the technology brought to the merger by Cashwerkz would benefit incumbents and be open to independent financial advisers (IFAs).
"While some incumbents are keen to use the cost and difficulties associated with compliance of cash investments to ‘own' their clients, consumers in many markets are now empowered by technology to break those compliance shackles and access better deals," he said.
"There is an enormous opportunity to scale the business by expanding into the before now, too granular and untapped retail market, the up-until-now paper based middle-market, and the before-now too time-consuming IFA market."
Cashwerkz and Trustees Australia would also reach out to other financial service providers to expand on future projects and revenue opportunities.
Recommended for you
Betashares has expanded its fixed income solutions with the launch of a new ETF offering exposure to subordinated bonds issued by the big four Australian banks.
The latest monthly Bank of America global fund manager survey has found investors are starting to shift cash into bonds as cash allocations reach a three-year low.
AUSIEX analysis has discovered the net traded value of Australian dollar fixed income ETFs more than doubled from January to April, reflecting growing investor demand.
Rather than taking a set-and-forget approach to credit investing, this investment specialist sheds light on why it is time for active management in the asset class.
