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Fintech acquires licensee

A fintech provider has acquired a financial services licensee, for an undisclosed sum.

PictureWealth acquired NEO Financial Solutions, the licensee will now become a wholly owned subsidiary of PictureWealth.

As at March 31, NEO was home to 83 financial advisers.

NEO managing director Mark Edman will move into the group chief operating officer role.

"This acquisition allows a unified and streamlined approach to provide consumers an accessible personalised service. The use of the fintech will assist in lifting the financial barrier many consumers may experience as the industry evolves," Edman said.

"A great combination of real people with technology. At the same time, we will be releasing a range of value-added services to make the lives of financial advisers easier so they can spend more time helping their clients achieve financial happiness"

PictureWealth also closed a $12 million late-seed funding round, comprising of private equity and debt.

PictureWealth co-founder and chief executive David Pettit said that NEO is in alignment with his company's culture.

"We found that the leadership team at NEO Financial Solutions shared our outlook on the future of financial advice and we wanted to align to take the companies forward together," he said.

"Many financial advisers have spent their entire lives building a business that is now worth less than expected, or in some cases nothing at all.

"This is due to a number of reasons, but primarily the new education requirements from FASEA means they have to have a degree level qualification and many older advisors are just not willing or unable to spend another four years studying to get the new qualification."

Read more: PictureWealthNEO Financial SolutionsDavid Pettit
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