It could be a case of the retail IT platform being too expensive to manage, maintain and improve for very little benefit to them (assuming the percentage of money coming from retail investor was at most 20% and going downhill)
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It could be a case of the retail IT platform being too expensive to manage, maintain and improve for very little benefit to them (assuming the percentage of money coming from retail investor was at most 20% and going downhill)
Although you'd imagine they'd be locked into the IT system for the next 5+ years.
AML would be costly to enforce. Imagine they'll save that. Plus less queries; and new accounts to set up.
But suprised about HM lack of spine. Sell a line to push their own status, and when the going gets tough, they find their "new friends" - the very ones they intended to disrupt in the first place
So you think maybe those "new friends" just gradually bought up the place. Invested a bit more each year, and a bit more, and then turned round and said "get rid of those pesky retail investors, and we'll go back to being the members-only club that we've always been"?Quote:
the very ones they intended to disrupt in the first place
Just phoned them up and asked about getting reclassified as a wholesale investor... need $10m for that lol
But had a good talk to them. Reason I got is low value retail investors are simply not economical to serve. Too much admin required answering queries, phone calls, IT etc
That really does make sense. If you can get on the platform with $50 loans or whatever the amount is that would be generating bugger all revenue for Harmony but the costs would still be as large if not larger than dealing with more experienced investors. Sad but it is the reality.
Cheers for the infor alistar.
Would it not be more reasonable if HM had looked for a solution to accommodate the investors. Arrange for a 3rd party to setup a managed fund; or a scheme through an institution?
Were the investors not part of the journey, over the past 7 years?
Hi Cool Bear. Been with Zagga for a year but never invested. How frequent do the loans come up?
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