Financial planning tech company Intiger Group’s (ASX: IAM) recently announced partnership with the Commonwealth Bank (CBA) is on course to deliver a sizeable boost to the company’s commercial fortunes late this year.
Cash receipts from customers totalled A$127,314 during the first quarter 2018, with Intiger saying it expects production under the CBA pilots to be reflected in the coming quarters.
Intiger confirmed that it commenced working with the bank following a potentially lucrative deal in February. Intiger generated 190 Statements of Advice for CBA subsidiaries Commonwealth Financial Planning Limited, Financial Wisdom Limited, and Count Limited during the March period following 18 months of discussions and due diligence to make the deal a reality.
According to a company statement, Intiger and CBA program management teams are working closely to expand production volumes in line with its capacity and quality controls. Both firms recognise the scale and importance of the opportunity and are expanding production in a “structured and disciplined manner”.
Intiger hosted a team of CBA senior management and third-party site inspectors at its operating centre in Manila in April having agreed a mutually beneficial training and upskilling program that will be starting “imminently”. The program is designed to synchronise Intiger’s and CBA’s business practises and improve the level of service offered to potential clients.
Booming for revenues
The fintech company sees the future of financial planning based on automated artificial intelligence (AI) and scalable software. Intiger has developed BOOM2 and expanded the technology’s range of advice scenarios and processing capabilities during the past quarter.
“I am very pleased with the progress that the company has made over the past quarter towards its goals. We are passionate about helping financial advisers spend more time with their clients and less time documenting their advice. This is because quality financial advice improves people’s lives,” said Patrick Canion, chairman of Intiger Group.
“Whilst we would have preferred an acceleration in cash receipts, the board takes a strategic perspective in prioritising our resources, and we remain confident that the focus on developing our people and on BOOM2 remains the appropriate pathway,” Mr Canion added.
Regarding its development of BOOM2, Intiger says the product demonstrates effective AI application within large data sets with the product continuing to take centre stage within Intiger’s overall development activities.
Intiger continues developing its BOOM2 functionality by expanding the range of advice scenarios it is capable of processing. These now include risk insurance within superannuation and allocated pensions advice scenarios.
“Our vision with BOOM2 is to provide online tools that enhance the adviser/client relationship whilst reducing the costs and improving the quality of advice,” the company stated.
Importantly, BOOM2 at a licensee level allows control over certain advice parameters that minimise the likelihood that non-compliant advice can be provided.
Today’s news pushed Intiger shares more than 40% higher to A$0.027 each.