Company Interview / Bell leverages platform momentum to capture the unadvised market

Key points:

Platform business now comprises 72% of Bell Financial Group’s (ASX:BFG) results Focus on deepening relationships with existing clients and expanding wallet share Active adoption of AI in digital operations and client service Ongoing interest in M&A following recent Macquarie transaction and pursuit of Selfwealth (ASX:SWF)

Bell Financial Group (ASX:BFG) reports a robust annual profit growth, with record funds under advice and significant strides in business diversification. Arnie Selvarajah points to the platform division as a major driver, now representing 72% of group results with consistent compound annual growth of 14-15% over the past five years. This division encompasses three pillars: private wealth management, an online self-directed business under the Bell Direct and Desktop Broker brands, and annuity-style product offerings like margin lending and cash products. Selvarajah attributes success to the focus on recurring revenue and a scalable model, indicating further operating leverage and profit margin improvements are anticipated.

According to Selvarajah, expansion is currently driven by servicing the company’s substantial existing client base. Bell Financial sees opportunity in increasing its share of client portfolios, with $92 billion of funds under advice and an emphasis on holistic wealth management. On the technology front, artificial intelligence is already utilised to manage 8% of client enquiries in the online business, with further plans to enhance digital engagement and client experience.

Selvarajah also highlights ongoing interest in mergers and acquisitions, noting the impact of last year’s Macquarie transaction and a disciplined approach to further opportunities. He sees current market rotation into resources as favourable for Bell Financial and expects a more balanced market throughout the year.