Cashwerkz Limited (ASX:CWZ) Executive Chairman John Nantes talks about the company's 1H20 results, new partners to the platform, outlook for the second half and impact of COVID-19.
Katrina Bullock: Thank you for your company. I'm Katrina Bullock for the Finance News Network, and joining me today from Cashwerkz(ASX:CWZ) is Executive Chairman John Nantes. John, welcome back.
John Nantes: Thanks for having me.
Katrina Bullock: Pleasure. Now, first up, could we start with an update on the impact of COVID-19 on the business?
John Nantes: Sure. Cashwerkz is an online term deposit and cash platform, and for us at the moment, what we're seeing is a great opportunity to help people that are sort of experiencing difficulties and moving their money to cash and fixed interest.
There's two things that we can do to really help the Australian economy and everyone at the moment. Number one is provide great rates and great solutions to investors, to advisors, to people who are managing cash and fixed interest, and secondly, to the banks. We have 51 banks on our platform that are looking for capital right now to help the economy keep moving as debt becomes important, as capital becomes important.
So, Cashwerkz right now has a pretty big responsibility, we think, and a great opportunity to help a lot of people.
In terms of Cashwerkz itself, we've gone through our COVID-19 testing. We're able to work from home. We have a very secure environment. In fact, because we do not touch the money, Cashwerkz has been designed to be a very safe and secure place to invest cash and fixed interest.
Katrina Bullock: Thanks, John. Now, turning to the first half 2020 results, could you take us through the highlights?
John Nantes: Sure. During that period we saw a double of account openings, meaning we saw more and more people coming to our platform to use it, to experience what we could do. We also saw our active balances mature around $1.1 billion, meaning we really have achieved a critical mass in terms of what we do, even though over $4 billion to $5 billion now has started to move through the platform since we've started.
We have 51 banks on our platform, meaning we have great choice, great transparency of rates, and a really easy way of doing business for everybody who comes into our ecosystem. And very importantly during the period, the RBA have dropped interest rates and really took a lot of wind out of the cash and TD marketplace.
Having said that, at Cashwerkz, we still offer rates like 2 per cent over three months on our platform, and that's because the 51 banks are providing great rates in a very competitive environment. So, users of Cashwerkz can actually achieve better than walking into a bank at times rates and do that within three clicks.
Katrina Bullock: Thanks, John. And now to your goals for the next half and beyond, what are you hoping to achieve?
John Nantes: Well, first and foremost, the fact that we've built a great pipeline, in itself, talks to the credibility of our technology, the problems we solve, and even the great rates. With 51 banks on our platform, and the fact that you can get rates well above what the RBA are talking about and well above what many banks will offer by walking into a branch on their own, by bringing them all together we're creating a competitive marketplace.
We're able to talk to the market and say, "Here are some great rates and great offers, and it's upon you to come visit our site and get a really good outcome." Therefore, we need to be out there talking to dealer groups, stockbrokers, the market itself, linking in with other retail providers who get a lot of customer flow, and helping them all execute in the cash and fixed interest space.
There is a lot of pressure to continue to act in clients' best interests, and we really do help solve that problem, and there is more pressure than ever now to get that extra little bit of yield. In this particular environment, it makes a large difference. So even though the RBA might say rates are set at 0.25, at Cashwerkz you can get 2 per cent over three months, and the neobanks, the regional banks, the international banks and the big banks are on our platform.
So, we really have created a very unique place to help people get that extra little bit right now, which over the next three to six months is going to matter to a lot of households, a lot of businesses, and a lot of advisory firms.
So, we'll continue to execute that pipeline, we'll continue to promote the business and get out there, and keep helping people and banks come closer together, to get really good outcomes for both.
Katrina Bullock: John Nantes, thank you so much for taking the time during what is no doubt an incredibly busy period. Thanks for the update.
John Nantes: Thank you.