Product development in overdrive on the Yellow Brick Road
Yellow Brick Road has set itself the goal of being monthly cashflow positive by the end of the 2013/14 financial year, and to help it close the gap between revenue and expenses it has launched a suite of new products.Building on its partnership with Macquarie Bank, it has launched a credit card, a cash management account, a range of term deposits, a car loan and a business finance package - all supplied by Macquarie.Its Cash Manager account offers transaction facilities (online, telephone, BPay and cheque), no monthly fees and a rate of 2.5 per cent.The credit card will include a one per cent cash-back offer on purchases.Macquarie already supplies Yellow Brick Road with its Empower Home Loan, which was launched last November, and its Rate Smasher loan, which was launched in July.It will complete the product roll out with the launch of a self-managed superannuation fund service later this month and a separately managed account in October.Yellow Brick Road reported a loss of A$6.6 million for the year to June, compared with a loss of $6.8 million for the previous corresponding period. It enjoyed strong growth in revenue during the year to June, but had even bigger growth in commissions, consultancy fees and other expenses. Revenue increased by 68 per cent, to $24.8 million. The company's biggest expense item, commissions and consultancy fees, increased by 119 per cent.At an investor presentation yesterday, the company said the advice capability of its branch network was maturing and "single product authorities" were now the minority in its 168 branches. "Representatives are engaging clients with broader advice," the company said.