OzForex unveils new name, 'nuanced' strategy

Foreign exchange company OzForex has a new chief executive and, as of yesterday, a new brand and a newish business strategy. It has changed its name to OFX.

Chief executive Richard Kimber, who was appointed in May, launched the new brand at the company's annual general meeting yesterday. He also outlined a strategy that he hopes will double revenue by 2019.

Kimber said that the company's marketing effort had relied too much on search engines to find customers. Now that the company has a single name (it has been operating under different names in different markets) it can "amplify our strong new brand".

Kimber's first executive appointment is a new chief marketing officer, Maria Loyez, who has moved from AMP where she was director of channel marketing.

He believes the business can grow share in its core market - cross-border payments - in Australia and overseas. In Australia the key to growth will be a stronger marketing effort.

The key overseas market is the United States, where OFX is licensed in 47 states.

Kimber said: "We have to be very targeted, very specific about the states and demographics we go after. The SME market is under-served by banks there."

Another leg of the strategy is to go after "adjacencies". These include wholesale partnerships (such as white label arrangements), which the company already does.

It is also moving into the mobile transaction market, with the launch last week of a smartphone app.

"We can get more transactions from our customers by making it easier for them," Kimber said.

Another growth area is low-value payments. OFX has had a A$1000 minimum transaction size but that threshold will come down as the company looks to do more business with its established customers.

Kimber said the company would increase its investment spend by $20 million over the next two years.

Some of this strategy was outlined by Kimber's predecessor, Neil Helm, at the company's annual results briefing earlier this year. Kimber acknowledged this but said he has added some "nuance" to it since coming on board.

OFX made a net profit of A$25.6 million for the 12 months to March - an increase of 51.5 per cent over the previous corresponding period. Based on the company's preferred metric, pro forma net profit, earnings were up 21 per cent to $24.3 million.