FinClear, the financial services technology company, today announced that it had secured $20 million in funding to support its future growth ambitions. This funding has been secured through the issue of new equity in FinClear to Magellan Financial Group.

FinClear CEO David Ferrall said the investment would help FinClear realise the next step in its growth journey, building on the FinClear Platform.

“When we founded this company, we set out to provide an alternative to clearing for Australian financial services firms, but it’s grown into so much more than that,” he said. “Today we offer a complete turnkey technology solution for any company involved in financial services, from financial advisers to fintechs. We touch one in every three listed securities trades done every day in Australia and we are growing faster all the time. We are delighted to welcome Magellan as an investor.”

Magellan CEO Dr Brett Cairns said “We are very pleased to be able make this principal investment in FinClear as they share our vision and interest in providing choice for investors and removing friction from the investment process. We expect this to be a good financial investment over time and we also look forward to expanding our intellectual capital in partnership with FinClear as we continue our efforts to innovate to improve investor outcomes.”

The FinClear Platform runs the complete suite of trading and administrative functions for any company providing financial advice or wealth management, whether that be an adviser, stockbroker, or fintech. FinClear already provides the technology that underpins one of Australia’s largest retail trading venues. The FinClear Platform replaces what could until now only be achieved using multiple vendors and service providers, Mr Ferrall said.

“What we have today is an institutional-grade system that underpins everything a financial intermediary needs to do – from a front-end portal and trading through to settlement and clearing, including middle office efficiency tools. For the very first time a broker or dealer group has the ability to use a single platform for all listed securities. It also facilitates brokers to return to a self-clearing model should they wish to do so. We believe it’s a game changer for financial services in this country.”

FinClear delivers its technology on the FinClear Platform. Unlike its competitors, all FinClear’s technology is developed, built and maintained in Australia.