Software developer is Hayne collateral damage
Financial services software developer Intiger is facing "trading challenges", which it says are a consequence of the Hayne royal commission. Business has dried up as clients and prospective clients reassess their approach to personal financial advice.Last week, the company reported that it had completed a pilot project with Commonwealth Bank's financial planning business, Commonwealth Financial Planning. Intiger said it had met all requirements but had not been able to sign a deal with the bank.The company made a big investment in the CBA pilot. It says that without the anticipated revenue its current structure and level of resources are unsustainable.It will continue to support and develop its core product, BOOM, which produces advice and compliance documents. But it will scale back its offshore business processing business. It was only in January that the company released a bullish investor update, in which it said it was committing resources to "grow scale and diversify" the offshore business. It has been in discussions with several parties regarding possible acquisitions or joint ventures "to bring scale and complementary benefits and services" to its operations.In its latest ASX announcement, the company says: "Intiger believes that in the longer term, the recommendations of the royal commission will increase demand for the company's services. We believe that awareness of the value of financial advice will increase, as will the need for advisers and licensees to have and demonstrate quality and compliance."The only way to meet these demands at a price acceptable to the market is to integrate technology into advice processes to improve adviser productivity."However, in the short term the implications of the royal commission have presented trading challenges for Intiger, as clients have reassessed the processes in providing financial advice."