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Fast-growing wealth management company Netwealth Group (ASX: NWL) is sharpening its focus on the financial habits of younger Australians through the $2.46 million acquisition of digital financial education platform Flux Corp.
The buyout comes on the heels of the Flux platform’s growing profile in the fintech sector for delivering “engaging and accessible financial literacy content, gamification and digital financial tools”.
Netwealth CEO Matt Heine describes the deal as a “natural fit” for the group as it expands its capabilities and reach.
“As part of the intergenerational transfer of wealth across Australia, which many believe to be more than $3 trillion over the next 10 to 15 years, it is crucial for us to equip our adviser and licensee network with the tools to engage with these new segments effectively,” says Heine.
“Flux's innovative approach to financial education will enable us and our advisers to engage with the next generation of investors in meaningful ways."
Flux, which was founded in 2020 by “three school friends and two cousins” Gustavo Hoirisch, Justin Joffe and Brett Joffe, offers a range of educational tools and resources designed to simplify complex financial concepts and make learning about money both fun and impactful.
"Our mission has always been to make financial literacy accessible and enjoyable for all Australians,” says Flux CEO Brett Joffe.
“By leveraging technology, Flux looks to make financial education accessible to everyone, regardless of their background or financial situation."
Netwealth, which describes itself as a technology company, a superannuation fund and an administration business, is one of the fastest-growing wealth management groups in Australia.
Last week, the company revealed that funds under administration (FUA) grew at a record pace in the September quarter with net inflows of $4 billion – up 93.5 per cent compared with a year earlier.
Netwealth currently has FUA of $95.4 billion, up $7.4 billion for the quarter which comprises the $4 billion net inflows and a market uplift of $3.4 billion for the assets.
The company’s acquisition of Flux follows the $5.9 million buyout on 12 August this year of Xeppo, a data management and analytics platform that helps professional services firms manage their enterprise systems.
Flux produces digital content, a mobile app and financial tools that target the “emerging mass and emerging affluent market segments” of the market.
The platform currently has an audience of more than 430,000 members and 84,000 app subscribers, supporting a free and subscription service that delivers stock market and economic news, as well as personal budgeting tools in addition to wealth education.
Netwealth says the acquisition will help the Flux team extend the reach of Netwealth products and services to advisers and licensees looking to deliver new services to younger clients.
“We are pleased to welcome the Flux team to Netwealth,” says Heine.
“They have achieved strong success in engaging with the next generation of young adults, particularly the emerging affluent segment, on their finances and investments since 2020.
“It is a great addition to our business and provides a simple entry point to financial education for many Australians who often do not know where to begin their journey.”
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