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The Scale-up Playbook: Tech, Talent and the Compliance Tax

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Scaling a startup in Australia isn’t just about team growth it’s about moving from that scrappy get it done survival mode to building something that won’t fall over like Jenga as more starts to pile on. It’s a series of bets on your tech, your people, and leadership.

The Tech Stack: Can You Actually Hire People?

The development language you pick on day one will either be your best friend or your worst nightmare when developing your product or trying to scale it. It’s not just about what works, or what you know but as well what the Aussie talent market has available and the associated costs.

  • The Niche Trap: Picking something like Ruby on Rails, Svelte, or Golang can be a double-edged sword. They’re great for speed, but the local talent pool is tiny and incredibly expensive in comparison to languages like Node.
  • The Reality Check: if you can’t sustain growth needs due to skill and associated costs, to maintain your codebase in two years, you’ve basically coded yourself into a corner. Sometimes basic tech is better for business.

The Compliance Tax

Founders love to treat compliance like a future problem, but in Australia, that debt is getting expensive. Increased security threats and the tightening of privacy regulations within industries (Fintech, MedTech, Social Media etc.) requires it to be forefront of mind, not an afterthought.

  • The Privacy Crackdown: With recent shifts in the Privacy Act, ignoring data security is a massive risk. If you’re handling data or using AI, you’ve got to be transparent about it now.
  • Fix it Early: Trying to retro-fit security and privacy into a messy, high-growth system later is ten times harder (and pricier) than just doing it right from the get go.

Generalists vs. Specialists: Knowing When to Pivot

Your hiring strategy has to change as the product matures and the team and company transition into a full-fledged scale-up. This includes balancing responsibilities and having dedicated teams to handle tasks to enable efficiency and strategic planning.

  • The “Jack of all trades” Phase: Early on, you need generalists, people who can fix a pixel, provision a server, and deploy all in the same afternoon. They love the chaos and can wrangle it under control.
  • The Specialist Phase: Eventually, those generalists become a bottleneck. To keep the lights on and the platform stable; you’ll need heavy hitters in Cybersecurity or Data Engineering to keep the company compliant and increase the capabilities across marketing.
  • The Balance: Hire specialists too early, and you burn all your cash. Keep only generalists too long, and you end up with underperforming technology that nobody can untangle.

Leadership: Letting Go of the Reins

At some point, the all in one CEO/CTO/CFO/Chief of Staff model just breaks. You become the bottleneck for every single decision. The trick is timing. Hire too early, and you’re drowning in meetings and bureaucracy. Hire too late, and the wheels fall off because the chain of communication goes unrespected.

  • Building the C-Suite: Bringing in a CTO or COO isn’t just about delegating; it’s about bringing in experts who can handle the stuff you’re probably not great at like complex financial planning or recruitment.
  • The Middle Management Gap: The hardest part is the middle. You need managers who can translate your vision into daily work without you being in every single Slack channel. Hire them too late, and everyone burns out.

The Culture Shift: Making it Repeatable

This is usually the most painful part because it feels like you’re losing the soul of the startup.

  • Writing it Down: When you’re 5 people, culture is just the vibe. When you’re 50, it must be written down. It moves from tribal knowledge to actual documented values which must be reinforced.
  • No More Heroes: You have to move away from “individual heroics” (one person staying up all night to save the day) to team-based execution.
  • Change: Your early employees might hate the new structure, while new hires will feel lost without it. You’ve got to realize that culture isn’t a feel anymore, you must design it as your internal product bringing value to your employees.

 

Overall scaling successfully in Australia comes down to deliberate trade-offs early, choosing practical technologies, focusing on security and compliance and evolving the teams and structure as requirements change. If you get these right you can build companies resilient enough to last the tests of time.

If you are looking for any tailored advice to your situations reach out to a member of the team at Kapital Consulting.

 

Michael Reid – Recruitment Consultant – Software, Data & AI – LinkedIn

Kapital Consulting is a niche Finance Technology Recruitment Business specialising in Technology, Project Services and Data Recruitment across Australia. For more information connect with us on www.kapitalconsulting.com.au and follow us on www.linkedin.com/company/kapital-consulting

 

 

 

Setting Up for Success: The Art of Onboarding New Starters

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A great onboarding experience doesn’t start on day one. It starts before the laptop arrives, the logins are created, or the welcome coffee is booked.

Where the environment is fast-paced, the systems are complex and the people are time-poor, onboarding can often be treated as a tick-the-box exercise. But when done well, it’s one of the most powerful retention tools you have.

At Kapital, we’ve placed hundreds of professionals into BFSI firms across Australia. One thing we hear again and again? The onboarding experience sets the tone for everything that follows.

Here’s how to make sure your next hire feels confident, connected and ready to hit the ground running.

  1. Prep Before Day One

Don’t wait until their start date to get things moving. A week before, send a warm welcome note with:

  • What to expect on Day One (arrival time, location, dress code, who to ask for)
  • Hardware delivery or desk setup (laptop, access cards, phone if required)
  • Team structure or an org chart (so they can learn names/faces early)
  • Any onboarding decks or business overviews (especially helpful in regulated or technical roles)
  • A personal note from their hiring manager or a team member
  • A welcome message or video call from the CEO or COO if possible (it makes a huge difference when new joiners hear from senior leadership early)
  • Working with a recruiter? We’ll get this information from you prior to them starting, but it’s always a nice touch point to also receive a “looking forward to you joining”

If the exec team has a packed calendar, consider setting aside a designated monthly (or bi monthly) onboarding day – a short, focused session where all new joiners can meet senior leaders, hear about the company journey and ask questions.

 

  1. Get the Basics Right

Few things frustrate new starters more than showing up and… nothing works.

Make sure this is sorted before they arrive:

  • Laptop, email, Slack/Teams, Zoom access
  • Security passes or remote access tokens
  • Introductions booked with key stakeholders
  • A clean desk if they’re coming onsite – with the right monitor/tech setup
  • A plan for their first week (a light one is better than none at all)

 

  1. Design a Proper First Week

A structured onboarding plan helps new hires absorb information at the right pace. Mix formal induction with informal intros:

  • Day 1: Set expectations. Who do they report to? How often will you check in?
  • Day 2-3: Meet with key cross-functional teams (don’t overload them, just prioritise the essentials).
  • Day 4-5: Let them shadow meetings, review processes or explore systems. Give them a soft landing.

Even if they’re senior, don’t assume they’ll just “figure it out.” Internal culture, systems and expectations differ across every organisation.

 

  1. Don’t Kill the Pace You Hired Them For

One of the biggest red flags we hear from new hires?

“I was brought in to bring energy, change and new ideas – then told to slow down.”

If you’ve hired someone to drive transformation or inject momentum, don’t stifle that energy on week one. If a manager’s first instinct is to say “that’s not how we work here” or “slow down”, that’s not feedback on the new hire – it’s a reflection of how the business has been operating.

Set the tone early: encourage contribution, curiosity and proactivity. New voices often see the clearest gaps. That’s what you hired them for.

 

  1. Make Them Feel Connected Early

People remember how they felt in week one – not what systems they used.

Small things that go a long way:

  • A welcome post on Teams or Slack, LinkedIn
  • A buddy system
  • Invitations to informal catch-ups or team stand-ups
  • Add them to key email groups or channels so they’re in the loop

 

  1. Remember Global Teams and Remote Joiners

If you’re hiring someone remotely or from a different region, don’t leave them out of the culture-building.

  • Use video by default in week one – it builds rapport
  • Schedule team-wide Zoom/Teams calls for intros and Q&A
  • Send them a physical welcome kit if possible
  • Pair them with someone local to help with time zone navigation and internal networks

First impressions matter even more when you’re onboarding remotely.

 

  1. Set the Foundations for Retention

This isn’t just about onboarding. It’s about integration.

The number one reason we hear people leave roles early? “It just didn’t feel like the right fit.” That’s rarely about the job itself. It’s about how they were supported (or not) in the early days.

Check in after one week, one month and then regularly. Ask for honest feedback. Flag any road blocks early. The first 30-90 days are where you gain, or lose engagement. 

You’ve invested time and money to hire the right person. Don’t let poor onboarding unravel that.

Thoughtful onboarding protects your investment, strengthens your culture and ensures new starters aren’t just “joining” – they’re contributing.

 

If you’d like a simple onboarding checklist to guide this process, let us know – we’re happy to share what’s working across the industry.

Because great onboarding isn’t just good for the candidate. It’s great for the business.

 

Shannon Stobbs – Manager – LinkedIn

Kapital Consulting is a niche Finance Technology Recruitment Business specialising in Technology, Project Services and Data Recruitment across Australia. For more information connect with us on www.kapitalconsulting.com.au and follow us on www.linkedin.com/company/kapital-consulting

The Role of Emotional Intelligence in Leadership: Why It’s Essential During Restructures, Cuts and Change

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In the world of BFSI, many senior leaders are stepping into roles not to maintain, but to change. Whether it’s driving transformation, delivering cost efficiencies or restructuring entire functions, the message from the top is clear: fix it.

But org restructures or technology uplifts one thing often gets lost: the people.

If you’re making changes that affect teams – cuts, realignment or absorbing functions, emotional intelligence (EQ) isn’t a nice-to-have. It’s a must.


You’re Not Just Moving Boxes on an Org Chart

Leadership during a restructure is not just about timelines and handovers. You’re dealing with individuals, often in close-knit teams, who are losing colleagues, role clarity and in some cases, their sense of safety at work.

They’re watching closely. They notice how it’s communicated. They notice how their colleagues are treated on the way out. They remember who was transparent and who disappeared when things got uncomfortable.

Restructures done without emotional intelligence don’t just impact the people leaving. They drain the energy and are the decision of people staying.

 

What Emotional Intelligence Looks Like During Change

EQ in leadership isn’t about being soft. It’s about being self-aware, emotionally attuned and communicating with intent. In periods of uncertainty and change, it’s what separates a respected leader from one who’s barely tolerated.

Here’s how it plays out in practice:

  • Anticipating team reactions before a restructure is announced, rather than reacting to the fallout
  • Acknowledging the human impact of decisions, not just the commercial logic
  • Having direct conversations with those affected, even when it’s hard
  • Clearly explaining the ‘why’ behind decisions, so the team doesn’t have to fill the gaps with assumptions
  • Following up with the team after changes land, to rebuild trust and refocus direction

These aren’t fluffy leadership hacks. These are foundational moves that protect morale, prevent passive attrition, maintain momentum and build trust.

 

Don’t Forget the Global Teams

Restructures often involve globally distributed teams – Singapore, London, New York etc. Yet too often, those outside HQ are left out of the loop or are the last to know about changes.

If you’re making structural or leadership changes, you need to lead globally, not just locally.

Best practice includes:

  • Running full team calls (Zoom/Teams) to align on changes and future direction, with time for Q&A, even the tough stuff
  • Rotating call times to avoid excluding one region from every key update
  • Following up in writing with clear takeaways for all regions, especially when time zones prevent full attendance
  • Making regional managers part of the change narrative, not just the delivery chain

You can’t retain what you don’t include. And right now, global capability is a competitive advantage, don’t lose it to poor communication.


Retention is Your Hidden KPI

You can restructure. You can reset. You can deliver change. But if your high performers quietly exit in the six months that follow, you haven’t succeeded, you’ve just shifted the problem.

  • Retention isn’t just about salary. It’s about belief
  • Belief in the direction
  • Belief in the leadership
  • Belief that people matter – even when change is hard

The best leaders keep people aligned not just through logic, but through trust. Emotional intelligence is how that trust is built and how it survives structural change.


Lead the Change, Don’t Just Execute It

You might be in the role to make hard decisions. But how you deliver those decisions is what defines you as a leader.

  • You can restructure and still retain.
  • You can deliver tough news and still build trust.
  • You can lead with accountability and empathy.

You were hired to get a job done. Maybe that job involves cuts, stepping into a team that’s burnt out, or resistant to change. Maybe it means resetting expectations after years of overwork, under-delivery or “just surviving”.

But you won’t do it alone.

If you want your role to succeed, your people need to feel safe, supported and heard.

You can be commercially sharp and emotionally intelligent.

Because you’re not just fixing processes.

You’re rebuilding trust.

Shannon Stobbs – Manager – LinkedIn

Kapital Consulting is a niche Finance Technology Recruitment Business specialising in Technology, Project Services and Data Recruitment across Australia. For more information connect with us on www.kapitalconsulting.com.au and follow us on www.linkedin.com/company/kapital-consulting

The Rise of the Strategic CTDO in Insurance: AI, Talent and Transformation

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In the evolving landscape of insurance, one role is quietly but powerfully reshaping the industry’s future: the Chief Technology & Data Officer (CTDO). The CTO was once viewed as a functional leader focused on infrastructure and systems, today’s CTDO is emerging as a strategic force driving technology, data and AI innovation, modernising legacy platforms and building the talent engines that will define tomorrow’s insurance leaders.

From Operational Oversight to Strategic Orchestration

Historically, the CTO’s remit was rooted in IT governance, business-as-usual operations and technological risk mitigation. The data function, often siloed, was tasked with reporting and compliance of data flows and customer data. As insurers grapple with digital disruption, rising customer expectations around speed, accuracy and the transformative power of GenAI, the convergence of technology and data leadership has become mission critical. We have already seen the emergence of the CTDO (Chief Technology and Data Officer) in our Superannuation, Investment Management and Funds Management clients.

The modern CTDO is now expected to:

  • Architect AI-driven transformation across claims, underwriting, fraud detection and customer service.
  • Modernise legacy systems to enable agility, scalability and real-time decision-making.
  • Balance innovation with governance, ensuring ethical AI deployment in a highly regulated environment.
  • Lead talent strategy, building high-performing teams that blend engineering, analytics and business acumen.
This is not a theoretical evolution, we have heard first hand how this is playing out in boardrooms, seen in our clients hiring strategies and transformation roadmaps across the insurance sector.
 

GenAI: The Catalyst for Change

Artificial intelligence is no longer a future consideration, it’s imperative. GenAI, in particular, is redefining what’s possible in insurance operations:
  • Claims Acceleration: AI-powered platforms like Guidewire are being reimagined to process claims faster, flag anomalies and reduce manual intervention.
  • Fraud Detection: Machine learning models are identifying patterns and outliers with unprecedented accuracy, protecting both insurers and customers.
  • Policy Optimisation: “GenAI is reducing our policy setup times and increasing opening rates by up to 35% a huge turning point in our customer onboarding experience”.
But with great power comes great responsibility. CTDOs must navigate the delicate balance between experimental speed and ethical compliance. This requires not just technical fluency, but strategic foresight and stakeholder alignment.
The Talent Imperative: Building the Future Bench
Technology alone doesn’t transform businesses, the people do and the race for top-tier data and technology talent is intensifying across the entire financial services industry not just insurance.
We have seen firsthand how insurers are rethinking their hiring strategies to attract the next generation of CTDOs, data engineers and AI specialists.

The key question for GMs and hiring managers is clear: How do we attract, retain and grow the talent needed to modernise legacy systems and build scalable, future-ready platforms?

The answer lies in three strategic pillars:
1. Vision-Led Leadership
Top talent is drawn to bold missions and interesting initiatives. Organisations must articulate a clear transformation agenda, one that positions technology and data as strategic levers, not simply support functions. This can include exec sponsorship of AI initiatives, transparent modernisation roadmaps and continuous learning.
2. Collaboration
Strategic CTDOs build bridges across engineering, analytics, product and compliance driving collaboration rather than silos. They invest in internal capability, empower teams through agile operating models and create clear pathways for leadership development.
3. Strategic Recruitment Partnerships
In a competitive talent market, insurers must go beyond reactive hiring. Strategic partnerships with specialist recruitment firms, those who understand the nuances of insurance, technology and transformation, can unlock access to passive talent, salary benchmarks, market positioning and accelerate time-to-hire.

Looking Ahead: The Insurance Enterprise of Tomorrow

The insurers that thrive in the next decade will be those that treat technology and data not as cost centres but as growth engines. The CTDO will be at the heart of this transformation, orchestrating change across people, platforms and processes.
For boards, GMs and transformation leaders, the mandate is clear:
  • Elevate the CTDO role to a strategic function
  • Invest in AI capability and ethical governance
  • Build talent pipelines that reflect the future of insurance
Kapital has been partnering with insurers on this journey placing transformative leaders, designing future-ready operating models and helping organisations unlock the full potential of technology and data.
The rise of the strategic CTDO is not just a trend. It’s a turning point.
If you’re navigating this transformation or looking to build a future-ready tech and data leadership team, let’s connect.

Sean Turner – Founder – LinkedIn

Kapital Consulting is a niche Finance Technology Recruitment Business specialising in Technology, Project Services and Data Recruitment across Australia. For more information connect with us on www.kapitalconsulting.com.au and follow us on www.linkedin.com/company/kapital-consulting

 

The Transformation of Data Platforms in Superannuation and Investment Management

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Lets take a decade by decade look…

Data evolution has been driven by technological advancements, regulatory demands and the need for improved fact paced decision-making and real time member engagement.

There are so many systems nowadays like NeoXam, Goldensource, Fencore, Finbourne, ICS, Eagle/BNY, Matrix/Rimes, MarkitEDM, State Street Alpha and Factset all of which have unique offerings and all vying for your business – but how did we get to this point of evolution with such sophisticated product platforms in our industry?

As the industry has grown, data platforms have evolved from basic systems handling static data to complex, real-time, and cloud-based platforms capable of processing vast amounts of information.

This transformation has enabled superannuation funds and investment managers to make more informed decisions, optimise operations and enhance member services.

Let’s jump in and take a look at the journey through the ages……

 

1. Early Data Platforms (Pre-2000s): Basic Record-Keeping and Compliance

Data platforms in the superannuation and investment industry in the early days were relatively simple. They were primarily designed to meet regulatory compliance needs, such as tracking contributions and maintaining member account balances. These systems were limited in scope and functionality and the data was often siloed with little integration across different functions and different systems.

They were basic database systems for tracking member accounts, contributions and withdrawals. They were simple reporting tools and required manual data input and processing and limited ability to provide  real-time insights or analytics.

 

2. Introduction of ERP and Financial Software (2000s-2010): Integration and Automation

As superannuation funds grew larger and the investment landscape became more complex, the industry began to adopt enterprise resource planning (ERP) systems and specialised financial software. These platforms introduced greater levels of integration across team functions, helping to automate back-office operations and provide more accurate financial reporting.

These systems allowed better integration of member data, investments, and accounting and data warehouses began to emerge, enabling the storage of large volumes of historical data for more comprehensive analysis. The start of automating routine tasks (payroll, fund administration and regulatory reporting).

Challenge was that data remained largely batch-processed with limited real-time capabilities however integration improved

 

3. Shift to Data Analytics and BI (2010-2015): Data-Driven Decision-Making

With increased industry competition and an increased focus on investment performance and member engagement, superannuation funds began to adopt more advanced data analytics and business intelligence tools. The ability to generate actionable insights from data became a strategic priority.

This era saw the introduction of data analytics and business intelligence (BI) platforms for portfolio management, risk assessment, and performance analysis. Data visualisation tools emerged and advancements in data reporting occurred for reg compliance, risk management and member comms.

Issue is that platforms were still predominantly on-prem making scalability and flexibility difficult.

 

4. Advent of Cloud-Based Platforms and Big Data (2015-2020): Scalability and Flexibility

The adoption of cloud-based platforms and the ability to process big data marked a significant turning point in the superannuation and investment industry. Advancements in cloud technology allowed funds to scale their data storage and processing capabilities, while also providing flexibility in managing both structured and unstructured data.

Cloud allowed the reduction of on-prem data centre costs and big data technologies enabled funds to process vast amounts of information quickly.

Data integration became more seamless and we saw the growth of advanced analytics, machine learning and AI to automate portfolio management and optimise investment decisions.

There were still issues around data security and privacy and the migration of legacy systems to cloud platforms required significant investment

 

5. Real-Time Data and AI-Driven Platforms (2020-2024): Innovation and Predictive Insights

The most recent phase of data platform evolution has been driven by AI, machine learning, and real-time data processing. These technologies are enabling superannuation funds and investment managers to make faster more informed decisions and offer personalised services to members.

With the reduction in many superfunds and investment firms due to either acquisitions or mergers, and also the increased use of SMSF, means that funds are required to produce more significant returns for members.

AI and machine learning algorithms are used to predict market trends, optimise portfolios and automate risk, which as an SMSF member, you probably don’t have access to.

Real-time data platforms provide instant insights into portfolio performance, market conditions and member behaviour.

Personalisation at scale: Funds can now offer tailored advice and investment options to members based on their unique circumstances, powered by data analytics and AI.

ESG integration: Data platforms are also being used to assess environmental, social, and governance (ESG) factors, allowing funds to meet growing demand for sustainable investment options.

Regulatory compliance still remains a challenge as funds must ensure they adhere to evolving rules on data privacy and financial transparency. Business also need to ensuring that AI and machine learning models remain ethical.

 

What the future Trends in Data Platforms will look like: Decentralisation, Blockchain, and Enhanced Automation

Looking ahead, the superannuation and investment industry is likely to see further evolution in data platforms, driven by emerging technologies such as blockchain, decentralised finance (DeFi), and enhanced automation.

 

Technology advancements and the adoption of funds to utilise the best platforms fit for member purpose, transparency, reg compliance and security are going to be an interesting road ahead.

Sean Turner

Founder | CEO | Tech Recruitment Leader
February 26, 2025

 

Kapital Consulting is a niche Fintech Recruitment Business specialising in Technology, Project Services and Data Recruitment across Australia. For more information connect with us on www.kapitalconsulting.com.au and follow us on www.linkedin.com/company/kapital-consulting

Funds Management M&A Newsletter 2024

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Welcoming you to our Funds newsletter, where we delve into the recent trends and developments within the Australian funds management industry. In this edition, we explore the state of the industry, significant mergers and acquisitions, and the evolving landscape shaping the future of investment management in Australia.

 

State of the Industry

 

The Australian funds management industry continues to demonstrate resilience and adaptability amidst ongoing economic uncertainties and market volatilities. With a robust regulatory framework and a strong focus on investor protection, Australia remains an attractive destination for both domestic and international investors seeking diversified opportunities.

 

Despite challenges posed a few years ago by the global pandemic and recent geopolitical tensions, the industry has shown remarkable growth in assets under management (AUM) over the past few years. The increasing demand for sustainable and socially responsible investment options has also reshaped the investment landscape, with funds incorporating environmental, social, and governance (ESG) principles into their strategies as well as delving into new benefits provided by investment data system providers such GoldenSource, Finbourne, Rimes (Matrix), S&P Global (IHS/MarkitEDM), Fencore, NeoXam and BNY Mellon (EaglePACE).

                   

 

Industry Mergers and Acquisitions

 

Dexus acquired AMP Capital’s real estate and domestic infrastructure equity business (AMP Capital) in March 2023. The combined business creates a leading real assets investment manager in Australia with more than $60 billion of funds under management.

 

           

AMP and Ares Management Corporation: A subsidiary of Ares Management Corp. completed its acquisition of Sydney-based AMP Ltd.’s infrastructure debt platform in early 2022. The transaction added about $8 billion in assets under management to Ares, bringing its total AUM across its debt and equity platforms to over $12 billion.

 

         

Magellan Financial Group, Barrenjoey Capital and FinClear: Magellan Financial Group acquired a 35 percent stake in Barrenjoey Capital Partners, signalling its foray into investment banking and capital markets. This strategic alliance has enhanced Magellan’s diversification strategy and strengthens its position as a diversified financial services provider, catering to the evolving needs of its clients across the investment spectrum. Magellan also acquired a 15 percent stake in FinClear, an Australian leading independent technology and infrastructure provider for financial markets both listed and private.

 

   

Perpetual and Pendal: Perpetual completed a $2.5 billion acquisition of Pendal in January 2023 bringing Perpetual’s total assets under management to roughly $200 billion strengthening its position in the Australian investment industry.

 

Other completed mergers in the Funds industry

 

  • Australian Ethical and Christian Super
  • Australian Super and Club Plus and LUCRF
  • Cbus and Media Super and EISS Super
  • Centric Super and Encircle Super merged
  • Equip and Catholic Super and BOC Super
  • First State Super and Vicsuper and WA Super and VISSF (rebranded as Aware Super)
  • HESTA and Mercy Super
  • Hostplus and Intrust and Statewide
  • LGIAsuper and Energy Super and Suncorp Super (rebranded as Brighter Super)
  • Sunsuper and QSuper and Incitec Pivot Employees Superannuation Fund (IPES) and Australia Post Superannuation Scheme (APSS) (rebranded as Australian Retirement Trust)
  • Tasplan and MTAA (rebranded as Spirit Super)
  • UniSuper and Australian Catholic Super

 

Mergers under discussion or in progress

 

  • Active Super and Vision Super
  • Alcoa Super and Australian Retirement Trust
  • AvSuper and Australian Retirement Trust
  • Care Super and Spirit Super
  • Commonwealth Bank Group Super and Australian Retirement Trust
  • Hostplus and Maritime Super
  • Mercer Super and BT Super and Lutheran Super and Holden Employees Super Fund (HESF)
  • Oracle Super Fund and Australian Retirement Trust
  • TWUSuper and Mine Super

 

 

 

These mergers and acquisitions underscore the industry’s dynamic nature and the imperative for firms to adapt and innovate in response to changing market dynamics and investor preferences. Consolidation trends are expected to continue as firms seek scale, diversification, and strategic partnerships to navigate the evolving landscape and drive long-term growth.

 

Future Outlook

 

Looking ahead, the Australian funds management industry is poised for continued growth and innovation, fuelled by technological advancements, regulatory reforms, and shifting investor preferences. Firms will need to remain agile and responsive to emerging trends, including the rise of digital assets, the integration of AI and machine learning in investment processes, and the increasing focus on sustainability and responsible investing.

 

As the industry evolves, collaboration and partnerships will be key drivers of success, enabling firms to harness collective expertise, leverage complementary capabilities, and deliver value-added solutions to investors. With a commitment to excellence, integrity, and client-centricity, the Australian funds management industry is well-positioned to navigate the challenges and seize opportunities in an ever-changing global landscape.

 

Thank you for joining us in this edition of our newsletter. We look forward to bringing you more insights and updates on the dynamic world of funds management in the months to come.

 

Hope you have enjoyed this newsletter and for further information, please feel free to reach out to us

 

How to successfully integrate two Investment firms

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Due to the high volatility and shere number of funds and investment management businesses looking to acquire, sell or merge, we thought it would be a good idea to write an article to highlight some key take aways to consider when acquiring and integrating two investment firms.

 

When it comes to integrating two investment firms from a technology and systems stand point, there are several factors to consider. Here are some of the best practices for technical integration:

 

  1. Conduct a comprehensive technology audit

The first step in technical integration is to conduct a comprehensive audit of both firms’ technology systems. This will help identify any redundancies, compatibility issues, and areas that need improvement. The audit should cover hardware, software, networks, and data centers. This is a good time to highlight each companies unique platforms which comprise of:

  • Order management system (OMS) and trading platforms
  • Investment management and risk analytics systems
  • Enterprise Data Management and performance
  • CRM platforms (usually Salesforce in buyside clients)
  • Data visualization and business intelligence (usually PowerBI, Tableau or Alteryx).
  • Any financial advice platforms
  • Who do they outsource fund administration to and also does this cover custody, fund accounting and transfer agency services?

  1. Choose a platform for data consolidation

After the technology audit, the next step is to choose a platform for data consolidation. This platform should be able to accommodate data from both firms, as well as any future acquisitions. It should also be secure, scalable, and able to integrate with other systems.

 

  1. Establish a project team

To ensure a successful technical integration, it’s essential to establish a project team. This team should consist of representatives from both firms and should include IT professionals, project managers, and other key stakeholders. The team should be responsible for overseeing the integration process, including setting timelines, managing budgets, and communicating progress to stakeholders.

 

  1. Prioritize integration efforts

Given the complexity of integrating two investment firms, it’s important to prioritize integration efforts. The project team should focus on critical systems first, such as trading platforms, order management systems, and risk management systems. Once these systems are integrated, the team can move on to less critical systems.

 

  1. Communicate regularly

Effective communication is essential for successful technical integration. The project team should communicate regularly with stakeholders, including employees, clients, and vendors. This will help ensure that everyone is aware of the integration process, any changes that will affect them, and when they can expect the integration to be completed.

 

  1. Test and validate systems

Before going live, all integrated systems should be thoroughly tested and validated. This will help ensure that the systems are working as intended and that there are no critical issues. Testing should include end-to-end testing, user acceptance testing, and performance testing.

 

In conclusion

Integrating two investment firms technically can be a complex process. By conducting a comprehensive technology audit, choosing a platform for data consolidation, establishing a project team, prioritizing integration efforts, communicating regularly, and testing and validating systems, the integration process can be successful. It’s important to have a clear plan in place, communicate effectively, and be prepared to make adjustments along the way.

Fintech Recruitment Newsletter August 2022

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Technology-driven trends

The following trends will likely drive demand for skilled talent over the coming years. In a post-pandemic world defined by production challenges and political unrest, people continue to focus on digital solutions capable of shifting traditional models of distribution. These emerging trends lie at the intersection of data and employment:

Lifestyle and skills reappraisal

The great attrition of 2021 saw employees resigning in record numbers. While this trend continues in many markets, it has shifted its focus somewhat towards reappraisal and renegotiation. Employment numbers are healthy, with a fundamental mismatch between the demand for talent and the people supplying it.

41% of Australian workers and 40% of global workers say they might leave their jobs in the near future.

Technology has a huge role to play in this brave new world, as data skills and remote work arrangements enable fluid movements between locations and industry sectors.

Digital demand and distribution

The redistribution of banking continues to divorce traditional financial channels. Digital solutions remain resilient in the face of change, and emerging digital-physical hybrids offer a viable alternative solution. The global pandemic has accelerated a permanent channel shift, making data skills more in demand than ever.

In 2021, over 40% of core retail banking sales originated in the digital sphere, in an environment where total sales dropped by 10%, and digital sales rose 4%. This highlights the resilient nature of digital resources in tough economic climates.

As digital banking grows and data-led solutions overflow into other financial services, professionals with data skills will likely remain in high demand.

Alternative investment models

The wealth management industry faces altered priorities, with new delivery methods, offerings, and economic models requiring a new skills base. While the traditional longing for capital efficiency and recurring revenue is even more pronounced, technology plays a bigger role in achieving these things.

Customer demand for wealth management is expected to surge by $254 billion by 2030, which is double the revenue from 2021.

With ESG (environmental, social, and governance), private, and digital investments increasingly desired by new and existing customers, data expertise will retain its immense value in the years ahead.

Safety and security

As technology evolves to meet the demands of the brave new world, security remains a key concern. Moreover, the current global political landscape is accelerating existing trends, with the invasion of Ukraine and tensions with China increasing challenges and driving cybersecurity investment.

Cybercrime is expected to cost the world an estimated USD$10.5 trillion by 2025, a number that has grown from just USD$3 trillion in 2015. This highlights a growing need for digital security employment, which is relevant to fintech and most other industry sectors.

Cybercrime is a huge concern for banks and financial services organisations trying to protect customer data. The rate of demand has increased and so has the expectation on candidates skillsets.

We have seen huge demand across our Australian client base in all of the above areas and have further research to provide. Should you wish to find out more, please message us at info@kapital.com.au or team@kapital.com.au

 

Fintech Recruitment Newsletter October 2021

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Even with Covid restrictions this has certainly been a bumper year to date and a candidate driven market!

Over the last 6 years, our Fintech industry has grown from AUD250m in 2015 to AUD4Bn in 2021.  Based on findings from Findexable 2021 global Fintech rankings, Australia has jumped two places in the global fintech rankings and now ranks 6th in the world and 2nd in the Asia Pacific region. This surge has brought about new Fintech start-ups across: buy now pay later (BNPL), share trading, foreign exchange, accounting automation, home loans, financial credit checks and credit scoring as well as new financial investment firms.

Global interest in Australia’s Fintech industry will continue to grow after Square recently acquired BNPL firm Afterpay for $39bn. This goes to show that overseas companies are certainly paying close attention to the Australian Fintech industry.

Although we have now gone into a 2nd year of lockdowns across the country, the fintech recruitment industry is surging forward with no signs of softening. I can’t recall a market quite like this for some time now!

 

 

Senior Level Industry Appointments 
  • Ann-Mary Rajanayagam, placed by Kapital Consulting, joined JANA as the Head of Technology after returning from a lustrous banking career in New York City.
  • Sam Hallinan was appointed the new CEO of Schroders Australia moving across from Nikko Asset Management in April.
  • Allison Hill has been appointed the new Chief Investment Officer at QIC in Brisbane
  • Shantell Wiliams leaves Fintech Purple Group to join Tic:Toc as their new CTO
  • Tim Larcos named as new CTO at PwC
  • John Sutherland (2020 CIO of the year) recently joined HammondCare as their new CIO

  

Kapital’s Funds & Investment Management placements:
  • Chief Technology Officers (CTOs)
  • CIO
  • Head of Technology
  • Multiple Enterprise Architects and Heads of Enterprise Architecture
  • Information Security Manager
  • Product Manager
  • Head of IT Infrastructure
  • Principle Identity Architect
  • Workplace collaboration Lead
  • Application Support
  • Multiple Business Analysts and Data Analysts
  • Investment Data Analysts
  • Data Migration Developer
  • Equity Quant Developers
  • Multiple system and Automation Testing profiles across Payments, CRM and Banking
  • Data Centre Project Manager
  • Cyber Security Architects
  • Service Delivery Managers
  • Multiple Project Managers across Security, Cloud, Applications, Infrastructure and Investment Systems
  • Solution Designers
  • Multiple DevOps Specialists (mainly Azure and AWS, not so much GCP)
  • Multiple .Net, Java & Python Developers
  • Mulesoft Developers
  • Mobile Developers
  • Desktop Support Analysts

 

Salaries and threats

We spoke about this in our last newsletter and it continues to be a very hot topic. Last year we faced more counteroffers than ever before as well as candidates, too nervous to make the switch to a new role. Now as Covid and working from home has become the new norm, the market is feeling a lot more comfortable to look for new opportunities. This is largely due to client demand but also the comfort that companies now have a solid Covid onboarding process for new hires.

There is such high demand for technology skills across Australia, that we are witnessing candidates with 2-3 offers on the table. It is certainly a candidate driven market and we have seen first hand where candidates with niche technology skillsets, are being offered anything from 20-35% pay increases to leave their current roles.

Candidates are being snapped up very quickly, offered high salaries and in many cases sign-on bonuses. There is an uptake in clients willing to look interstate and also overseas for top talent. Companies have definitely embraced this throughout 2021 and have been onboarding new hires from further afield.

What we are seeing for 2022

It is clear that the demand for top talent, will continue for the remainder of 2021 and certainly well into 2022. There has been huge demand for Development and DevOps skillsets with ~95% of our clients looking for experience in one or both of these verticals. Data Analytics still in high demand and a recent surge for Mobile Development and Mulesoft Development expertise. We will see the demand for Project Services skyrocket throughout 2022 with the relaxing of Covid restrictions and the knowledge that return to work is back on the horizon.  Simply put, there are companies, not comfortable taking on critical initiatives with project teams working from home and not in the office.

The growth we have experienced in 2021 was much needed across many industries and we will see this continue to ramp up through 2022 for all our clients. If you would like further information on the market or roles we are running, please do not hesitate to reach out to us at info@kapital.com.au

Till next time!

Fintech Recruitment Newsletter November 2020

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Market Snapshot across Buy-Side Funds & Investments

What an interesting year it has been to say the least. A solid start to 2020 in terms of hiring into planned system implementation, transformation and integration programs. Then March kicks in and everything came to a grinding halt. The disruption Covid brought had drastic changes for many industries. Healthcare ramped up, restaurants and pubs shut down and financial services companies who were very traditional in their tech set up with desktops and fixed line phones, had to very quickly, set their employees up to work remotely. Some technology and fintech start-ups looking at 2020 to be their year to gain funding from PE / VC firms or foreign investors, would need to wait another year. Companies going IPO were certainly nervous too.

We all adapted, for the better. More companies have adopted a solid work from home policy. It’s now part of the interview and onboarding process for many firms. There is far wider work life balance. Managers are now being trained and getting better at managing remotely. Employees don’t want to give off the impression they are slacking off and therefore productivity increases. The sentiment is that this is the reset we all needed.

For 6mths there was no grey area. Either companies were hiring to spend their budgets before June 30 or they were on a hiring freeze, as they were rolling budgets into the 2020-2021 financial year from July 1. What this meant, was for the first time in a while, we had the ability to be more targeted in our approach to clients and their recruitment needs.

Since Q3, we are seeing our clients back to pre-Covid levels of activity with a lot happening in the buy-side funds and investment space across data visualisation, investment data and development. It looks like 2021 is shaping up to be a busy year.

 

Senior Level Industry Appointments
  • CBUS have appointed a new CEO in Justin Arter who moved across from Blackrock.
  • Thomas Achhorner started as the new CIO of Volt Bank.
  • Mark Rider is the new CIO of Christian Super.
  • Willem Popp moved into the Head of Shared Services Technology at Judo Bank.
  • Andrew Cresp was appointed the new CIO of Bendigo and Adelaide Bank.
  • Andrew Dimech is now at Australian Payments Network as the Head of Information Technology.
  • John Knox joins Ares Management as their new chairman, moving from Credit Suisse.
  • George Confos has been appointed as the CEO of Avenue, a new Australian bank.
 Kapital’s Funds & Investment Management placements:
  • 2 x Heads of IT with another at offer stage
  • Head of IT Infrastructure
  • A number of Enterprise Architects and Heads of EA, another at offer stage
  • 4 Investment Data SMEs
  • 3 Snr Buy Side Funds Business Analysts
  • 2 x Desktop Support and Technical Analysts
  • MarkitEDM Developer
  • DevOps & Cloud Support
  • Infrastructure and Security Consultants
  • C#.Net Developers

 

Salaries and threats

This has been a very interesting topic over the last few months on a number of levels. At the start of the pandemic, we had more offers turned down than ever before. Simply put, candidates were too nervous to make the switch to a new role, rather than stay in a position where they are a known employee and going into the unknown of what Q2 would bring. Companies were offering more than 20% of the current salary and they were still being turned down. When candidates are going for interviews now, more care is taken by them, to ask about the onboarding process and company expectations. Salaries have certainly gone up. Projects that were on hold have now been given the green light. This has pushed up the demand for good industry talent however, with the reluctance of many candidates to move, supply has decreased pushing up salaries.

With the decrease in supply, many companies are starting to look for resources from further afield. Employers have adopted one week in the city, one week from home and there is more scope to use remote workers from interstate. Clients who historically would not consider interstate workers, are now open to remote resources from Hong Kong or Singapore. Some have considered Europe and the States for niche technical and system skillsets however, the time zone still plays a factor in this decision.

 

What we are seeing for 2021

Buy-side funds who had sales staff going out to meet their customers, now have to think of more intuitive ways to get the sell. This is going to demand a more efficient sales distribution team to better utilise visual dashboards through analytics, social media and virtual meetings. There will be a larger onus on solid investment data and visual aids to work this process and we are already seeing this.

The disruption of the royal commission and new financial regulation, has brought about big changes and impacts across funds and investments. Client and data reporting tools, are fast becoming a necessity and many clients are bolstering their toolsets in this space to ensure they are highly accurate with all data. Many of whom are implementing data governance frameworks, data analytics platforms and also implementing EDM (enterprise data management) platforms like EaglePace, Curium or MarkitEDM.

After the reset and softening of the global economy over the last 6 months, we see 2021 being a pumper year for all our clients.

Till next time.