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
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
Fund managers are entering 2025 with the most bullish sentiment since August 2021 and record high allocations to US equities, thanks to the incoming Trump administration.
An independent expert has ruled the Perpetual deal with KKR is no longer in the best interest of shareholders in light of the increased tax liabilities.
