SelfWealth growing in the face of finance industry’s woes

By Meagan Evans. Published at May 1, 2018, in Technology

The banking royal commission is currently underway and it’s fair to say that the stories emerging are nothing short of shocking.

There’s endless tales of woeful and deceitful financial advice — so bad in fact that that it has even led to families losing their homes. It’s also come to light that for years financial planning groups have been unlawfully deducting service fees from customer accounts, even falsifying documents.

The disturbing findings coming out of the banking royal commission should encourage many Australian investors to take more control over their investments and financial wellbeing.

Amidst this turmoil has emerged an innovative solution for people wanting to take control of their financial future.

That solution comes from SelfWealth Limited (ASX:SWF), an online share trading platform for ‘self-directed’ investors.

SelfWealth’s trading platform has an industry-leading low cost flat fee as well as what sets it apart: Australia’s first peer-to-peer investing solution, SelfWealth PREMIUM.

The Australian FinTech offers a $9.50 flat fee ASX brokerage service as well a social network platform for Australian investors.

SWF offers a well-established financial community providing access to follow the top performing investors to help members outperform. It looks at the best ways to build a portfolio that works for your circumstances and goals.

SelfWealth is also offering something unique to investors in the ASX-listed company itself. It has over 35,000 investor portfolios already allowing members to access so that they can improve their own performance.

With three different revenue streams — being trading revenue, PREMIUM revenue, and interest revenue.

Although only newly listed on the ASX in late 2017, in the March quarter SWF continued to demonstrate excellent growth. Third quarter revenues were up 90% on the prior quarter and 9x that of a year ago. Trade volumes were 25% higher over the three month period and active users rose by 50%, while the value of client cash and investments held rose 28%.

Selfwealth limited active traders

Yet SWF remains a speculative stock and investors and investors should take a cautious approach to any investment decision made with regard to this stock.

That growth was driven by substantial increase in active users and trade volumes as SWF continues to penetrate the market with its highly disruptive FinTech business offering.

Going forward, the company is actively upping its marketing spend to further accelerate growth.

It also has in its sights Australia’s first representative Exchange Traded Fund (ETF) for Self Managed Superfunds (SMSFs), the SMSF200 ETF, created by the power of its social network. The ETF will allow investors to invest in the top 200 portfolios of SWF’s 30,000 SMSF portfolios, as measure by its proprietary WealthCheck score.

CEO Andrew Ward said, “We are very pleased with the continued growth in new customers and revenue. In addition, to organic growth through industry recognition, we are also encouraged by the returns out national marketing initiatives are delivering for the business in terms of customers acquisitions, and we will continue to broaden our marketing efforts during this calendar year. It is clear our offering of $9.50 flat fee ASX trades and social network community platform is gaining significant traction with self-directed investors in the Australian share market.”

With growing distrust of the old model of how to invest, SelfWealth is positioned to provide a much needed and low cost solution. This will only be supported with SWF’s marketing initiates delivering results as well as innovative products in the pipeline.

S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of Maven Capital Pty Ltd (AFSL No. 418504). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

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The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

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