Profitability, page-66

All this talk about competing brokerage services ignores the fact that there is a base of Selfwealth users who aren't interested in changing their platform and investing habits. They're used to Selfwealth. It's what they know, and if they pay $7 more brokerage to stick to what they're familiar with and know works for them, versus trying something different and unfamiliar to them, they'll pay it.

Look at how many people still use Commbank for their brokerage, or even their banking. They're probably missing out on thousands in interest compared to say, Macquarie's savings accounts. But they do not care. CBA is hitting record highs all the time, their deposits are actually growing - all despite not being cost competitive in either their savings account products or brokerage services. They do not care because most people don't like changing habits even if it costs them money. Same story with Westpac, NAB, ANZ, etc - all growing deposits despite paying stuff all interest.

I think this fact will show up in the financials in the next 12-24 months. There's a good chance the current user base is largely uninterested in switching. Meanwhile positive share market sentiment sees more money going into customer's SWF accounts to buy stocks. So I think you could see key metrics such as active user base, customer deposits and trades performed actually rise from here. And if I'm wrong, and every financial metric crashes, then a competitor will probably just come along and buy up SWF' on the cheap (at 12c, they'd be buying the entire business for ~15m less net cash.). ie there should be a floor around current share price.