Trustees Australia merges with deposit marketplace Cashwerkz
New entity seeks to topple big four banks
Financial services group Trustees Australia and deposit marketplace Cashwerkz have merged as they seek to tap into the cash, term deposit and fixed income investments markets.
According to the duo, the new entity has access to over 30 Australian banks, and it will be able to compete well in the $2.1 trillion cash deposit market.
The pair say Australia has been “heavily dominated” by the major banks in this asset class, with 80% of term deposits currently held with the big four – i.e. National Australia Bank (NAB), Commonwealth Bank (CBA), Australia and New Zealand Banking Group (ANZ) and Westpac.
Michael Hackett, Trustees Australia chairman, says: “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.”
The plan is to use Cashwerkz’s quicker online option – where it says “traditionally term deposits can take up to seven days to be placed”. According to Cashwerkz, over $6 million has been invested through its platform in the last two weeks alone.
Trustees Australia says it 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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