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.
AUTHOR
Hope William-Smith
Recommended for you
The “experiment” away from vertical integration has been a mistake, according to Clime’s Michael Baragwanath, and Clime is positioning to benefit via advice and fund manager acquisitions.
JP Morgan Asset Management has identified Australia as an “emerging growth market” as it seeks to double its assets under management in the Asia-Pacific region in the next five years.
Australian Ethical funds under management were $14.3 billion at the end of September, with its investment division seeing inflows return after outflows in the previous quarter.
Record flows into iShares ETFs helped BlackRock’s assets under management reach US$13.5 trillion in the third quarter, but it reported outflows from the APAC region.
