SelfWealth Limited

ASX:SWF

SelfWealth Limited

ASX:SWF
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$0.250 (0%)
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#555
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Reports (2) My Report Forum Investors
Forum Topics SWF SWF Subtle Change

Pinned straw:
PeregrineCapital
Added 2 years ago

Recently SWF ditched Open Markets for FNZ securities. FNZ securities has a feature that automatically instructs clients share registries to pay dividends directly to their self wealth bank account. This has slipped under the radar but has probably been a small stroke of genius, provided it hasn't ticked off too many clients. I personally think it's pretty convenient, and should help alleviate point number 3 below.

Not 100% sure what to make of SWF's business prospects at the moment but note the following:

  1. Cashflow positive
  2. Organic growth is slowing, and possibly flat.
  3. People are moving cash of the platform because it is earning no interest .
  4. Datt Capital owns a lot of shares.
  5. They have about $10mil in cash

I think this could be a candidate for a merger or acquisition. Watch this space.


Remorhaz
Added 2 years ago

I agree it allows Selfwealth to earn more interest on money held in peoples SelfWealth cash trading account

I do note however there's been some fairly vocal backlash online (e.g. on Whirlpool's SelfWealth thread) about this - people complaining the change wasn't detailed in any email communications beforehand, etc - and calls to change brokers

I think the first you'd even know about it is if you'd clicked the email link before the cutover and accepted the conditions there you got asked the additional question re dividends being paid to the SelfWealth account (and you specifically had to tick No to stop this happening). If you just ignored the email and did nothing then I believe when you logged into SelfWealth after the changeover you were just asked to accept to keep your account (no question re the dividend change - and thus SelfWealth just auto changed everyones settings at the registries)

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PeregrineCapital
Added 2 years ago

Yep will surely tick some people off and I can understand why. Time will tell if it's a net positive or not.

I personally think it's pretty convenient and will save me a fair bit of time.

12
ArrowTrades
Added 2 years ago

Stake has been paying dividends into accounts and I personally thinks it's a net positive due to the convenience of not having to keep update with all the different registers.

I help my niece and nephew who were both using Selfwealth and I was getting sick of having to chase them up about filling in their details with each different register and chasing missing dividends. This should be much better for 'most' people and for SWF.

22
PeregrineCapital
Added 2 years ago

Apparently Stake and SWF were in merger talks a little while ago.

They have very similar businesses models. I wonder how much of a difference that the extra $6.50 per trade makes to the economic viability of SWFs business model? I'd speculate that SWF realised that they'd have to drop their fees upon merging the platforms and decided the numbers didn't stack up.

I've also wondered if ANZ or another big fish could make some money by bolting on SWF. It's probably too small to move the needle at the moment?

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