The merger of a trustee company and a fintech has led to the formation of an online one-stop shop for term deposits and other fixed income investments.
Trustees Australia, an ASX-listed company that has been involved in a mix of corporate trustee, property and tourism-related businesses, entered a formal agreement in June to acquire the fintech start-up Cashwerkz.
Two of Trustees Australia’s businesses are Rim Securities, a fixed income brokerage and advisory service, and Redgate Asset management, a fixed income fund manager.
Cashwerkz, which was launched last year, has developed an online term deposit marketplace that allows investors to switch between TD providers without having to verify their identity each time they move their accounts.
The merger was approved at a shareholder meeting in July and it was completed in August. Shareholders also approved the demerger of Trustees Australia’s non-financial assets, consisting of property and tourism businesses. The demerged business, now called Jimmy Crow, has been listed on the NSX.
Since then, The Rim Securities and Redgate Asset Management businesses have been bundled together and are now offered on the Cashwerkz platform, which is being promoted as a one-stop shop for defensive assets.
Once investors register, they can see a range of TD offers from a number of providers, as well as bond and other fixed income investments.
The Association of Independently Owned Financial Planners has endorsed platform, adding it to its approved product list.
AIOFP executive director, Peter Johnson, says: “We have been searching for an innovative solution in this investment asset class for some time. The platform provides a streamlined digital solution where an adviser [or an investor] can create a client account online within minutes and then research, invest and manage cash investments with ease.
Johnson says an attractive feature of the platform is that Cashwerkz does not require access to or control of a “hub” bank account. “Client’s funds move directly from one authorised deposit-taking institution to another, not through intermediary accounts
“Investors use their own cash management or transaction account for direct debit of funds with the chosen investment provider, ensuring control and security for advisers and investors.”