Publicly-listed cloud-based self-managed superannuation fund (SMSF) administration company, Class will undertake a 33% increase in spend to move its product offerings beyond SMSFs under its so-called Reimagination Strategy.
Class chief executive, Andrew Russell, flagged the increased spend at the same time as noting account growth on Class Super had slowed while the cost of acquiring new business was rising.
He also noted that the company’s Class Portfolio product had not performed to expectations and was not addressing customers’ pain points successfully enough with the current features, particularly with respect to investment reporting.
“Furthermore, we have not invested enough in the product development and engaged our customers to the extent of delivering a winning product proposition,” Russell said.
As a result, he said, the company intended to improve and evolve the Portfolio product and launch a new product this year focused on the trust account space.
“We believe the trust market opportunity is similar or bigger than the SMSF marketplace,” Russell said.
Dealing with the so-called Reimagination Strategy, the CEO said the company needed to increase its market opportunity through new products and new markets.
“We need to look for strategic acquisitions or partnering opportunities to get us there faster,” he said. “And for us to be able to execute, we need to invest to improve.”