SYDNEY: Centrepoint Alliance Limited has completed the purchase of the Enzumo financial planning technology solutions business comprising Enzumo Corporation Pty Limited and Enzumo Consulting Pty Limited from Chant West Holdings Limited.

An announcement was made to the Australian Securities Exchange (ASX) on 1 June 2020 that Centrepoint had entered a contract with Chant West Holdings to purchase Enzumo and that it was subject to certain conditions. The  contract  was  agreed  to  be  unconditional  and  the  settlement occurred.

Angus Benbow, Centrepoint Alliance’s CEO said: “We are pleased to welcome the entire Enzumo team into the Centrepoint Group.  Our cultures are very complementary and the Enzumo offer will broaden the technology solutions and services that  Centrepoint  Alliance  already  provides  to  financial  advisory  businesses  around  Australia, whether they are licensee groups, self-licensed advisers or our own authorized representatives.”

Enzumo is a leading provider of software services to the financial planning industry. Enzumo conducts in-depth analysis of financial planning businesses and creates tailored technology solutions to help them operate more efficiently and compliantly.

Centrepoint Alliance is a leading provider of advice and business services to financial advice firms throughout Australia. It offers a complete suite of governance, business management, client growth and advice services that enable advisers to spend more time providing advice to their clients.

Centrepoint’s CEO, Anus Benbow notes that, “technology has been driving greater efficiencies for advisers over recent years. However, COVID-19 has completely reframed the role of technology in advice delivery and will accelerate a far broader utilisation of technology across the sector.

“Advisers’ eyes have been opened to new ways technology can assist them, and they will be taking a multi-faceted approach to technology adoption in the future.”

“Centrepoint supports both self-licensed advisers and licensees – we already provide services to some of Enzumo’s largest clients, so Enzumo’s technology solutions are a natural complement to our advice and business services,” said Mr Benbow.

“Enzumo has been very successful in consulting to both self-licensed advisers and licensees. It is the strength of these relationships that attracted us to the business and where we see opportunity for continued expansion. Enzumo has a very high-quality team, and I am delighted to welcome them.”

The acquisition of Enzumo will further strengthen Centrepoint’s move to a scaleable, recurring fee-based revenue model, which commenced in August 2018 as part of the business’s strategic refresh.

“Since embarking on the transformation of our business, we have achieved great success,” said Mr Benbow. “In 18 months, we have shifted all our licensed advisers to our new subscription-based fee model. Recurring adviser fees are now our largest income source and increased by 37% during the first half of FY20. The average tenure of our licensed advisers is nine years – even after accounting for the strong growth in the number of advisers joining us during the last two years.

“The first half of this financial year was also a record period for adviser recruitment in which we welcomed 55 new advisers to our licence and grew net adviser numbers by 10%, despite the significant contraction in the overall number of advisers.”