To stave off the prospective revenue threat, Netwealth will launch a subscription SaaS offer, alongside its core platform product, and aimed at independent financial planners advising high net worth investors.Ī proprietary investment reporting software tool called X-Wrap will be the first cab off the rank in early 2020, providing advisers with data on their clients' off-platform assets such as property, offshore hedge fund allocations and antiques. Major US brokerages, including Fidelity, Charles Schwab and TD Ameritrade, all removed trading fees in October.Ĭredit Suisse analysts have projected that Netwealth could experience between a 10 and 30 per cent reduction in net profit after tax should commission fees on trading platforms in Australia reach zero. Netwealth also faces headwinds from the global trend of downwards pressure on trading and execution fees. The platform is reducing wholesale pricing to win business and progressively reviewing its back book to weed out discrepancies. “Prices have come down across the industry, all product providers are looking at pricing and all of the majors have already repriced,' Netwealth's joint managing director Matt Heine told The Australian Financial Review. Netwealth has foreshadowed that its 2020 financial year EBITDA margins will be lower than 2019 as it responds to major fee cuts by its bank-owned competitors and beefs up capital expenditure on technology development. Wealth management platform Netwealth will launch a software as a service (SaaS) offering as it moves to replace margins compressed by the global pressure on brokerage fees and the post-Hayne push towards user pays financial services.

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