Sympli comments on 2022 financial year results of PEXA
Friday, 26 August 2022
Sympli comments on 2022 financial year results of eConveyancing industry monopoly, PEXA
Sympli, an e-settlements service built by users, for users, today comments on the results of PEXA’s 2022 financial year results.
PEXA’s results clearly demonstrate its monopoly status, and it is disappointing to see that progress on expansion into international markets is being delivered at the expense of progress on critical competition reform in Australia.
In 2021, PEXA had 150 full-time employees working on the international expansion strategy across the United Kingdom, Australia and India, and invested $31 million into the project in FY22. Today, it announced plans to invest a further $45 million in international expansion over the next twelve months.
On critical industry reform set to introduce interoperability in the Australian market however, PEXA remains largely silent. In the eyes of the monopoly, competition is regarded as a “proactively managed risk.”
Despite PEXA assuring investors it is playing a “constructive role” in the development of the new regulatory framework to support interoperability, key stakeholders involved in the process know PEXA has demonstrated an unwillingness to remain engaged, and progress to date has been significantly delayed by the monopoly.
It is clear the monopoly is pursuing profit over and above value, choice and competition for its subscribers in Australia.
Sympli Chief Executive Officer, Philip Joyce, said: “These monopoly profits reinforce the need for change. It is telling that competition via interoperability in Australia is regarded as a ‘proactively managed risk.’”
“It is clear that PEXA’s intent is to stronghold its monopoly position. There are clearly no resourcing issues. Rather than spending $45 million overseas, how about PEXA focus it here to make sure Australian businesses and consumers have a fair, competitive eConveyancing market as soon as possible?”
“We are now at a critical point in time where all industry stakeholders must come together to collaborate and deliver. The Interoperability targets for mid-2023 represent a golden opportunity to implement a safer, more secure, more competitive and resilient ecosystem – to benefit home buyers and sellers and the banks & practitioners that support them.”
“Competition, through interoperability, will enable better outcomes for banks, practitioners and their clients.”
Sympli is the result of a collaboration between InfoTrack and ASX. We want to create more opportunity, add value and represent the market with an e-Settlements service from which practitioners across Australia can benefit.
InfoTrack is Australia’s leading provider of e Conveyancing technology and services and has been creating software for the legal and financial industries for over 18 years. InfoTrack has a focus on simple, end-to-end solutions, leveraging expertise to craft a truly integrated e-settlements platform that you can trust.
As one of the world’s leading financial exchanges, the ASX bring experience in clearing and settling transactions with security, speed, reliability, and cutting-edge technology. The combination of the two brings you Sympli: the next-generation e-settlements solution delivering healthy competition, reliability, security and value to the industry. For more information visit www.sympli.com.au