Praemium repositions for growth following international exit

Six months into the role, Praemium’s chief strategy officer, Denis Orrock, has explained how he is positioning the platform technology company for growth.

Orrock, who took on the role in November 2022, was responsible for areas of the business, including reviewing client services, distribution, marketing and platform operations.

Speaking to Money Management, he said he had been tasked with conducting an internal and external strategic review of the business following the sale of the international business, which had created a “natural inflection point” to review operations.

Praemium sold its international business to Morningstar last June for $62 million, which allowed it to prioritise its Australian customers. It was now seeking to grow both organically and inorganically, and Orrock said there were three types of companies that could be attractive to Praemium.

“[The international sale] was a decision taken by the board, and the outcome was a win-win for both parties. It allows us to refocus on Australia, which was probably needed. We are looking to grow by both organic and inorganic growth, [and] we are open to opportunities in the Australian marketplace.

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“We are open across the marketplace to companies who are like us, technology providers who are in a complementary part of the market and to administration businesses as well.”

He also opened up about the implementation of technology within the business, with Praemium having hired Richard Large from Future Fund as its chief technology officer earlier this year.

“We are looking at what our role as a platform and administration provider is regarding technology and how it can help our customers. What is the role of artificial intelligence and ChatGPT and where are the opportunities for it to streamline things? We are working through that.

“In the business, there are absolutely ways that ChatGPT could support in streamlining some of our support, but we have to make sure that anything we do is beneficial to our audience and could help advisers better service their clients more efficiently and accurately.”

This was becoming a bigger issue as adviser numbers declined at the same time as demand for advice increased, and technology could play a role in easing that burden.

“There will be tiers to what is provided [in advice] and how does technology help that? Will technology enable a hybrid advice model to emerge and then they move up the value chain to a full-service model as their needs become more sophisticated?”

Asked what his ambitions would be for the firm over the next three years, he cited consistently growing above its peers, improving margins and improving relationships with industry participants.

“We want things to work and be scalable; there is a great deal of innovation across the industry, but that is hard from ideation to actual execution, and it can be a journey and everyone struggles. But it’s important as that’s how you drive greater gains for customers. 

“Data strategy and interoperability between eco-systems will be a key driver for future growth.”