Firstly this isn't a ramp, just stating my opinion!
also I may cover what others have said but just trying to put it all together specially for people new to IAM.
Secondly I haven't posted much here as I was waiting for news to commence and now that has de-risked the company and I can post with more confidence.
I will not be selling any till we see at least 200-300mil MC or 10c as a Minimum but I can a larger MC then that over time.
Read below!
So lets start at the beginning....what is an SOA?
A statement of advice - A document that sets out the advice given to a consumer by their licensed financial planner or adviser. It must include the basis on which the advice is given, details of the providing entity, and information on any payments or benefits the adviser or licensee will receive.
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SO what Intiger can do....
It claims it can reduce operating costs of financial planning practices by 40 per cent, mainly by cutting the cost of creating statements of advice from between $285 to $315, to just $49, as well as reducing the turnaround time from up to a week to one day.
In Australia there is a very significant amount of financial planning process that is still manual, paper based.
So what does all this mean?
People like to deal with people with there financial advice this is how Intiger supports that with Lilly and Klip by giving FACE TO FACE FINANCIAL PLANNERS A MASSIVE COST SAVING!
LiLLy - A software platform that digitises and automates core components of the financial planning process including statement of advice or SOA's. To reduce costs further it provides offshore processing built for the financial planning sector. The facility is based in the Philippines which employs Australian trained staff who deliver financial planning back office and administrative processing services for various documents including statements of advice or SOA.
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http://www.intigerassetmanagement.com/lilly/
Klip - tracks key performance indicators of a financial planning practice and delivers oversight and control to both licencors and financial planning practices nationally.
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http://www.intigerassetmanagement.com/klip/
So onto the business model
As of 2015 there are around 15,000 financial planners and around 8,000 practices.
Of that almost 11,000 or 70% financial planners are from only 7 "aligned groups" see below.
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This is why I start with the thread potential billion dollar company
If they can hit 1 of these big 7 and show the cost savings are massive then many or ALL of the others would likely which to follow......it's a cut throat industry and this technology could make a huge difference!
2.5 million Australians currently use financial planning and 2 millions Australians say they intend to look for a new financial planner in the next two years
http://www.copyright link/business/...advice-amid-economic-concerns-20150314-1445fn
So that's 1 Million people intending to move in a year......that's 1 million SOA's! 1 Million!
Say IAM can achieve 3 or 4 of the big 7 and say 5000 advisers using our back office technology.
That's 33% of the advisers nationally and that would mean 333,000 SOAs!
Say $50 is costed on each that's $16,650,000!
Now that's just the SOA there is pre-SOA costs plus use of Klip
Including pre-costs would double that figure to
$33,000,000 revenue per annum.
Now I'm not going to guess other revenue figures as I don't know but to you see why I think a billion MC is possible over time
Now onto today's announcement
The Sentry Group has $5 billion in funds under advice and over 400 corporate and individual authorised representatives nationwide.
The Heads of Agreement provides the framework for the development and delivery of a centralised Sentry Group back office administration and paraplanning solution via the Intiger Group’s offshore processing platforms & proprietary software LiLLY and KLiP.
"Over the next few years, many advisers and licensees will exit the advice sector unable or unwilling to adapt as the era of professionalism gains momentum," Hills said.
"In this environment, the advice practice that will benefit the most will be characterised by non-institutional alignment utilising modern processes, technology and resources to ensure positive client engagement and service outcomes."
Under stage one of the arrangement, Intiger would set up a para planning service designed to dovetail into the operational frameworks of advisers, according to Sentry Group executive director and head of business solutions, David Newman.
"This will be followed by a pilot program with a number of key practices to
develop and fine tune the back office administration processes," Newman said.
"All these new processes and work flows will be integrated into the overarching IRESS customised technology solution that was developed specifically for Sentry and branded SENTRAK."
"Newman expected the pilot program to be completed by early New Year with the
roll out to the entire Sentry adviser network to begin thereafter."
http://www.moneymanagement.com.au/news/financial-planning/sentry-group-centralises-back-office
I hope this information helps holders and non-holders alike!
Cheers
GT
