At a time when digitisation of financial services is being accelerated to improve regulatory compliance, fintech company Class Limited (ASX: CL1) has dominated the Wealth Management & SMSF category at the 2021 the Australian Digital Technology Awards.
The awards recognise digital technology companies that provide outstanding outcomes within the financial services industry across Mortgages, Law, Wealth & SMSF, Accounting and Real Estate.
Recognised by a panel of industry leaders and academics, and voted for by professionals across the wealth and accounting sectors, Class Super was ranked number one in the Wealth & SMSF category while NowInfinity – which was acquired by Class last year – was ranked number two. Class was also awarded Established Business of the Year, while NowInfinity was awarded Mid-Range Business of the Year.
As long-time specialists in the SMSF sector, Class commenced its Reimagination strategy in 2019 to expand its product offering beyond SMSF administration by meeting more customer needs across the accountant’s back office.
This saw the acquisition of NowInfinity, SmartCorp and Reckon Docs all within the past 18 months. Through these acquisitions, Class has been able to increase its footprint in the legal documentation and corporate compliance sector substantially.
A leading technology company that services small accounting practices through to large global firms, the recent growth of Class as an all-inclusive platform for wealth accounting saw Class report strong results for the Half Year ended 31 December 2020.
This included revenue of $25.9m which represented a 27% increase and $10.4m EBITDA which represented a 29% increase. Shareholders were rewarded with a 2.5 cents fully franked interim dividend.
While Class Super was recognised as the top Wealth & SMSF platform, the Company has been vocal about the growth potential of Class Trust which was launched in October 2020 following extensive market research and development. Digitising Trust creation, administration and reporting, users of Class Trust have reported the platform reduces their accounting workload by up to 50%.
By entering the $147m Trust accounting market, Class created a new vertical that leverages their huge client base of more than 6,000 accounting, advice and legal firms.
With growth in the SMSF space stagnant, Trusts have emerged as the most effective vehicle for $3.5 trillion of wealth to be transferred from the baby boomer generation to their beneficiaries over the next 20 years.
As Class Trust continues to establish itself in the greenfield market serviced today primarily by Excel spreadsheets, industry recognition from the Australian Digital Technology Awards will further accelerate Class’ growth initiatives as Australia’s leading tech company in the wealth accounting sector.
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