Merger Creates Powerful Fixed Interest Investment Player in the Australian Market
Trustees Australia (ASX:TAU) and the new fintech marketplace operator, Cashwerkz, are excited to announce a merger where by an established business with plenty of FUM (funds under management) but no platform, effectively buys a brand new platform with a growing distribution network.
The combined business will serve retail customers, the financial planning industry, and the middle market – comprising superannuation funds, councils, and other entities – looking to invest large cash balances.
Anyone that needs a term deposit or a related cash product can access these through the powerful Cashwerkz platform which – in essence – is a new market place for cash. The platform’s unique back-end technology makes the onboarding and identification of clients a breeze and allows for easier switching of investments between ADIs (Authorised Deposit-taking Institutions). Its reporting enables individuals to manage all their cash investments effectively and transparently. IFA’s (independent financial advisors) can also manage all their clients’ cash investments in a cost-effective manner, for the first time.
The Cashwerkz with its industrial strength cash management platform, will be well positioned in the booming fintech space and for the first time offer consumers a wider choice of ADIs including access to regional ADIs such as smaller banks, credit unions and building societies. Likewise, it will offer regional ADIs and smaller banks access to a huge number of potential new consumers.
Brook Adcock, Chairman of Adcock Private Equity, the company behind Cashwerkz, said: “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.”
In complete contrast to almost every fintech business that has sought to disrupt an industry from a standing start, Cashwerkz has found a way to do disrupt a trillion-dollar industry by partnering with a traditional and very experienced financial services business.
Mr Adcock, continues: “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 will not only grow by servicing these new markets but also by expanding into new products such as cash management accounts high interest savings accounts, annuities and bonds. By retaining its custodial license, the entity, listed under Trustees Australia, can offer custodial services to small and medium third parties, which it has identified as a gap in the market.
Due to its unique capability and the reshaping of the financial services market, Cashwerkz and Trustees Australia are already in talks with other financial service providers who understand the need for efficiency, transparency and the empowerment of the consumer. This will further expand the revenue opportunities for Cashwerkz as the passion to create a new independent and non-conflicted marketplace leads to more opportunities for everyone.