Centrepoint acquires advice technology business

In a statement released on Monday, Centrepoint said it had purchased advice software consulting and customisation business Enzumo from Chant West in a deal that would boost its technology offering to financial planners.

“Technology has been driving greater efficiencies for advisers over the years. COVID-19 has completely reframed the role of technology in advice delivery and will accelerate a far broader utilisation of technology across the sector,” Centrepoint chief executive Angus Benbow said.

“As part of our strategic refresh, we anticipated increased demand for technology support services from both our authorised representatives and self-licensed businesses. We are already making significant investments including the introduction of online adviser portal Centrepoint Connect and the development of AI-enabled practice management tool Centrepoint Adviser Intelligence.

“The acquisition of Enzumo will enable us to develop our technology and data services further to assist all those in the Centrepoint Alliance network to be both more effective and profitable, as well as ensuring continued support for Enzumo clients.”

Mr Benbow said Enzumo’s technology solutions were “a natural complement” to the existing Centrepoint business and that there would be no immediate changes to staffing in the business as a result of the acquisition.

In a further update on the Centrepoint business, Mr Benbow said the group had recruited 55 new advisers in the first half of the financial year, and that recurring adviser fees were now its largest income source since transitioning its licensed advisers to a subscription-based fee model.

However, net growth in advisers over the six-month period had only been 10 per cent, which Mr Benbow attributed to “significant contraction” in the advice industry overall.

“We commenced our strategic refresh in the firm belief that Australians need a strong and sustainable financial advice sector,” he said. 

“The last few months have provided a clear illustration of the value of advice and the importance of thinking about technology differently, and has further emboldened Centrepoint Alliance as we continue to execute on our strategic priorities.”