Bravura eyes digital advice as it rebuilds business
Bravura is seeking to be a market leader in digital advice, as the firm focuses on rebuilding the business.
In its half-year results for the six months to 31 December, the fintech firm said more than 3.4 million Australians have access to its digital advice solutions. The digital arm also includes Bravura Digital, Midwinter, and digital transfer agency solution taWeb.
Andrew Russell, group chief executive and managing director of Bravura, said part of the firm’s “reset and energise” strategy includes a focus on market-leading technology and realigning its core businesses, such as the Australian wealth management.
This includes an “investment in digital advice, positioning Bravura as a market leader, with more than 10,000 individual statements of advice issued”.
Wealth management saw an 8.5 per cent increase in revenue from $77.3 million in the first half of 2023 to $83.9 million.
Total revenue rose 7.4 per cent from $118.3 million to $127 million, which Bravura said was driven by project work and upgrades, coupled with price increases in underlying contracts.
Net cash flow inflow was $12.6 million, and it reported a net profit after tax (NPAT) loss of $1.7 million, compared to $12.6 million in the prior corresponding period.
Russell said: “The business is transforming at a fast pace, and we have realigned our business around regions, products and clients. The business is stable and well-capitalised, which will allow us to formulate a capital management strategy in 2024.”
The firm has seen three chief executives in three years, and Russell noted the resilience of staff during this turbulence. Russell was appointed in July 2023 after holding the role in an interim capacity, following the departure of Libby Roy in the prior month. Roy had held the role for just 10 months until June 2023, replacing Andrew Parsons, who took on the role in September 2021.
Prior to Parsons’ appointment, Tony Klim held the role for 13 years.
He said: “We are still very focused on delivering in the second half. We know we are not out of the woods yet. We have to get this business humming and operating under our new structure to be client- and people-focused. We have had a lot of change, and I commend our staff for their resilience there.
“We have a clear pathway forward which people are getting behind. There’s momentum in the business, and we will continue executing in the second half.”
AUTHOR
Laura Dew
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
