Fintel has announced the acquisitions of two technology platforms to bolster its service proposition.
It has acquired Competent Adviser that is a learning platform that helps advisers meet regulatory compliance rules.
And Fintel has also bought MICAP that provides independent advice tools for investment products.
The fintech provider revealed the news in a trading update for the six months ended 30 June 2023 published today (27 July).
Competent Adviser is the first acquisition through the ‘Fintel IQ’ arm that is a technology and solutions hub.
It is designed to acquire and develop a connected regulatory and business support platform that can be used across Fintel’s customer channels.
Competent Adviser was founded in 2003 and currently provides compliance and development training to over 15,000 users.
According to Fintel it supports the completion of nearly 500,000 tests per year and allows users to manage their T&C processes in a fully compliant basis.
This acquisition was funded entirely from cash reserves with upfront cash consideration of £2.5m.
The deal completed in July 2023 and a £500,000 contingent earnout is based on certain trading criteria being delivered in the first year of ownership.
Fintel also said the acquisition of MICAP by subsidiary business Defaqto will extend its data footprint and research capabilities.
Defaqto provides financial information, ratings and fintech in the advice sector.
Fintel pointed out both these developments follow it taking a 25% stake in Plannr Technology Ltd in June 2023.
Plannr provides a specialist CRM capability for financial advisers, planners, and wealth managers.
Defaqto will integrate Plannr’s CRM system to extend the capabilities of its Engage financial advice and planning technology.
This aims to realise efficiency benefits for the 8,000 financial advisers who use its platform.
Fintel joint chief executive Neil Stevens said: “Fintel has worked with Competent Adviser for nearly a decade, and we know how much advisers’ value its simplicity, the flexibility of its modules, and the relevance of its content.
“We selected Competent Adviser as the first investment to be integrated into Fintel IQ – our new regulatory and business support platform – as its ethos and values align perfectly to our own.
“It will help us to address the vitally important and increasing need of dynamic competency and knowledge management for both advisers and providers.”
Stevens added: “The acquisition will enable tailored content and further system integrations to deliver even more relevance for each user and ensure efficient integration with other adviser software systems. The more streamlined we can help to make advisers’ processes, the more time will be freed up to spend with clients and, ultimately, ensure better outcomes for all.”
Other highlights of the trading update include core revenue that increased to £27.6m (HY22: £27.1m, LfL: £26.6m) up 1.6% in total and 4% on a like for like basis.
Fintel intends to publish its interim results for the six months ended 30 June 2023 on 19 September 2023.
