Trustees Australia and Cashwerkz today announced a strategic merger of the two companies, that brings together 31 years of traditional financial services experience with intuitive technology. The partnership will transform the way Australians manage their cash, term deposit and fixed income investments.
Traditionally term deposits can take up to seven days to be placed, with Cashwerkz, investors can place a term deposit in as little a few minutes. “By moving the entire investment process online, while remaining regulatory compliant, we not only save investors time and effort, but also help maximise their cash investments. Term deposit rates are fairly low at the moment, which is why it’s more important than ever to be able to research and manage your defensive assets easily”, said John Nantes, Executive Director and Head of M&A.
The new entity has access to over 30 Australian banks, ranging from the big four to smaller credit unions, and a suite of defensive asset options such as term deposits, bonds and third-party managed funds, encouraging a more competitive environment in the $2.1 trillion cash deposit market. Australia has been heavily dominated by the major banks in this asset class, with 80 per cent of term deposits currently held with the big four.
Fixed income investments such as bonds and annuities, which have historically been difficult to access, will now be more accessible to the every-day investor through the Cashwerkz platform. This opens the door for investors to a greater choice of investing options, from a greater number of smaller but equally regulated banks, particularly those with limited branches.
John Nantes said “Financial advisers, accountants, SMSF’s, middle market, fund managers, industry funds and everyday investors will greatly benefit from Cashwerkz, solving the need to invest and manage defensive assets in a more streamlined and transparent way. The merger provides investors with a greater offering without having to ever walk into a bank or go through a complicated and time-consuming process”.
Transactions are executed with the highest level of security, with the investor having full control and transparency. To help prevent fraud, funds are always placed with the investor’s chosen financial institution, in their name, from the investor’s personal account. Customer funds are never held in a Cashwerkz account or directed by Cashwerkz, a unique method to replace less secure practices still in use today.
Cashwerkz is already working with leading Australian banks to reach next-generation investors and forging the path for technological advancement and customer expectations. Consumers have already been successfully transacting with Cashwerkz, with over $6 million invested through the platform in the last two weeks alone.
Michael Hackett, Chairman said “We have plans to scale the business by expanding into the passive and underserviced retail market, digitising the paper-based middle-market, fund managers and industry funds sector and streamlining the previously too time-consuming financial services market”.
“This is a unique opportunity to revolutionise an area of investing which was desperately lacking in innovation by offering investors three simple things; more choice, more control but in less time”, said Michael. “This is a perfect example of traditional and innovative, working together, to service the customer and create a more personal, relevant and streamlined banking system”.
The new entity, listed under Trustees Australia (ASX:TAU), will not only grow by servicing new markets, but also by expanding into other defensive assets that provide a stable income. It will begin a capital raise shortly to expand the offering and increase its market penetration faster.
Trustees Australia is now seeking to raise up to $10 million (at $0.20 per share) in additional capital, which, if successful, would give the company a market capitalisation of $27 million.
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