Nice summary. The presentation was recorded and will be uploaded...

Nice summary.

The presentation was recorded and will be uploaded onto the Coffee Microcap Youtube page tomorrow. It's well worth a listen if you want to grasp all the nuances.

I asked about future developments/new services and specifically cryptocurrency trading.

They are in the midst of a 12 week customer insights deep dive, with a focus on Millennials (which is being conducted by an independent, external agency). Rob emphasised how the nature of investing is changing and basically stated if the deep dive reveals a strong demand for a service, such as crypto trading, then that is what will be catered for (i.e. demand-led prioritisation).

The deep dive will inform a product/innovation roadmap for the next 12 months. This will be published the middle of this calendar year (which will coincide nicely with the new CEO and her plans). I got the impression that this roadmap will identify some quite substantial projects, above and beyond incremental improvements/enhancements.

Linked to the above, Rob stated that “we are fit, able and ready to take on the banks” who still have over 70% market share. The capacity and ability exist to add more international exchanges (through Phillip Capital partnership). Likely to be one Asian (Hong Kong mentioned) and UK/Europe. Also mentioned that expanded services would include:

• Access to IPOs
• Options trading
• Sophisticated investor accounts, providing access to capital raisings

“Subscription revenue is the pot of gold”. At present, only 2.5% pay for this service. They'll be a big push leading up to end of financial year to increase take-up. This will be underpinned by enhanced functionality and improved usage of community data. Rob conceded that they'd not fully utilised the latter and they needed to educate clients of the benefits.

Rob also mentioned that they are aiming to get the proportion of US trades from 7% to 15% of all trades. He seemed quite confident that this would be achieved in the near term.

I found the presentation very helpful as it consolidated my view's about how SWF will monetise it's user base. Revenue per active trader will be a key metric to monitor, as it could feasibly double over the new few years.