Cashwerkz Limited (ASX: CWZ), formerly known as Trustees Australia Limited, is a traditional financial services company with fintech capabilities. The company announced (on 12 June 2019) that the Agility Connect solution from Agility Applications, wholly owned subsidiary of HUB24 Limited (ASX: HUB), is now integrated with Cashwerkz’s digital cash investment platform marketplace. It was reported that the partnership allows the advisors and their respective clients to smoothly operate the administration & application of At Call and Term Deposit cash investments.
Cashwerkz’s partnership with Agility Application aims to tap latter’s custom data solutions offering to 175 Australia financial services groups.
As per the release, the real-time integration of Cashwerkz’s Authorised Deposit-taking Institutions (ADIs) with advisors would provide online access to competitive Term Deposit and At Call investment rates along with secure and quick administration of cash investments. Also, the integration delivers regularly updated and transparent market competitive interest rates and provides clients a reassurance that the advisor is acting in best interest through audit trials.
Mr Hector Ortiz, CEO of Cashwerkz, quoted that the new integration with Agility is in line with the strategy to deliver benefits for financial advisors and clients. He also said that the company had experienced strong traction from advisors, and CWZ welcomes the advisors using Agility Applications to Cashwerkz marketplace. Additionally, he stated that the open integration Application Programming Interface (API) allows advisors to manage and customise the portfolio of client’s investments, and CWZ’ user-friendly platform could fast track cash investment strategies.
Craig Apps, Director of Agility Applications, stated that Agility is committed to providing choice to its clients, and the integration with Cashwerkz leverages Agility’s unique open architecture capabilities, allowing Agility Connect to host range of cash and term deposit solutions to enable secure, seamless connection to external providers and escalated efficiencies for clients. He also praised CWZ’s ability to develop such an identification process to reduce administration needs, while enabling advisors to deliver value & choice of solutions to the clients.
Cashwerkz Limited operates the digital-only cash investment platform which provides bank-grade security in its offerings. The fees is neither charged to investors nor CWZ manages the investor money. The company charges fees to the issuing ADI partners on its platform for cash investments, which makes the platform very convincing for the industry participants using cash management offerings.
Cashwerkz Limited is emerging as a disruptive player in the market of Term Deposits and At Call investments services; it is actively leveraging the fintech capabilities attained from the acquisitions. In the past two years, the company had evolved completely and starting to emerge as a financial services company with demonstrated financial technology capabilities.
The group along with its subsidiaries Cashwerkz Technologies & RIM Securities leverages the tech capabilities provided by Cashwerkz Technologies while also hosts a range of fixed income products under the established fixed income specialist RIM Securities.
Secure Technology Capabilities (Source: Investor Presentation, March 2019)
Partnership with Praemium
Recently, CWZ announced the partnership with Praemium regarding the use of Integrated Managed Accounts Platform along with digital cash investment platform by Cashwerkz. Reportedly, the partnership would start providing offerings from many CWZ’s partnered Authorised Deposit Taking Institutions (ADIs) in a single platform used by clients and advisors of Praemium.
Innovative Solutions (Source: Investor Presentation, March 2019)
Other Recent Updates
In January 2019, the group announced that the value of term deposits using Cashwerkz platform reached $1.5 billion and added few APRA-regulated ADI partners. In March 2019, the group announced the launch of new At Call savings account options offering up to 2.3% interest for investors; it was reported that new At Call offering was designed to offer significantly higher market-competitive interest rates against the prevailing rates on cash management account in real time. The group also announced that it reached a new milestone for funds passed through the platform, which reached $2 billion.
In accordance with the release on 22 May 2019, the group announced that it would be adopting the ticker CWZ w.e.f. 23 May 2019, and Trustees Australia Limited would be renamed to Cashwerkz Limited.
Let us look at how the group had evolved over the years:
In August 2017, Trustees Australia Limited, completed the demerger of Jimmy Crow Limited and subsequently completed the acquisition of Cashwerkz. The company achieved its objective of listing two different businesses on different exchanges. Also, the company acknowledged the fintech capabilities bought by Cashwerkz to the new entity.
Since these transactions were completed, the company had made significant advances in its platform offering and the way it operates.
In November 2017, the group announced the strong endorsement of Cashwerkz’ platform by Association of Independently Owned Financial Planners (AIOFP), and the platform was admitted to Approved Product List (APL), which allowed AIOFP members to utilise the leading-edge platform to streamline defensive asset investments.
In December 2017, the company announced MoU with Australian Executor Trustees (AET) to provide a secure technology platform for AET’s Corporate Trust division to provide defensive asset product like term deposits for their clients.
In March, the company announced a partnership with IRESS wherein the transaction reporting became accessible through IRESS/ XPlan, which is used by some 65% of financial advisors to record client investments.
In August, the company reported that an agreement with One Managed Fund Investment Limited had been executed to provide an institutional workflow solution for term deposits. It was reported that the CWZ’s platform would benefit digital upgrades with rate research, workflow implementation, capturing of KYC/AML obligations, real-time reporting and investment management at one place for One Managed Fund Investment Limited.
In October, It was reported that the group had successfully added Award winning Australian Authorised Deposit-taking Institution (ADI) Gateway Bank on its platform to provide term deposit products to Australian investors.
Stock Performance: CWZ last traded at A$0.230 (As on 7 June 2019). CWZ has delivered a stellar return in the period of five-year, which is +229.94%, and the performance of the stock in the past one year is +27.78%. Its year-to-date return is at +35.29%, and the six-month return is at +24.32% along with +15% in the last one month.
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