Why Netwealth purchased a data management platform

Netwealth’s acquisition of data management and analytics platform Xeppo, initially announced in its FY2023–24 results in August, was completed on 12 August for $5.9 million in cash consideration and a $2.2 million loan from Netwealth to Xeppo that was converted to equity.

Commenting on the deal, Netwealth chief executive Matt Heine said the acquisition of Xeppo aligns with the firm’s strategic goal of placing data “at the heart of everything we do”.

“Xeppo is at the forefront of data management and analytics and by adding the Xeppo capabilities to Netwealth, it accelerates our strategy and prepares us even better for an AI-driven future,” Heine said.

Furthermore, he said the integration of the two platforms would allow wealth management firms to “unify client data and systems”, which Netwealth believes is the “cornerstone of any future-orientated advice practice and licensee”.

According to Netwealth research, most advice firms are using more than 15 different technologies within their businesses, leading to greater cyber security concerns, workflow inefficiencies, and continued governance pressures.

Netwealth said that together with Xeppo, it aims to address some of these concerns, while also helping advice businesses harness the power of data with a single source of client information.

The firm added that this would help advisers strengthen relationships with their clients and utilise data to make better-informed business growth and revenue decisions.

Through Xeppo, advisers will be able to access more than 25 business software connectors from financial services, accounting, wealth, banking, compliance, and SMSFs. Additionally, Xeppo provides purpose-built tools to help advisers better manage and utilise client data and allows them to access a wide range of industry-specific reports and dashboards.

Heine added: “It is clear that the Xeppo solution has been designed not only for the professional firm of the future, but also the licensee of the future, who can now use a single source of data for increased oversight and governance and better understand risk.”