- The ASX is creating Sympli, an electronic property settlement service for lawyers, conveyancers and financial institutions.
- The business is 50/50 joint venture with Australian Technology Innovators Pty Limited, the parent company of InfoTrack, the eConveyancing technology and services group.
- The ASX estimates Sympli will break-even in the 2021 financial year.
The ASX is spending $30 million and leveraging its expertise in settlements to create an electronic property settlement service for lawyers, conveyancers and financial institutions.
The equities market operator has done a deal with Australian Technology Innovators Pty Limited (ATI), the parent company of InfoTrack, the eConveyancing technology and services group, to enter the national electronic property settlement market.
Sympli Australia Pty Ltd, owned 50/50 by ASX and ATI, has applied to become an Electronic Lodgment Network Operator with the regulator, the Australian Registrars’ National Electronic Conveyancing Council.
The partnership combines ASX’s expertise in secure, electronic financial market settlements and InfoTrack’s in property settlement technology and processes. Property settlement is still largely a paper-based process in Australia.
“Entering the electronic property settlement market is a natural evolution for ASX,” says Dominic Stevens, ASX Managing Director and CEO.
“We already settle approximately $70 billion in transactions electronically every day and have been the central settlement venue for the Australian financial market for decades. InfoTrack is the ideal partner as the market leader in legal and property search.
“It has 18 years’ experience and brings a deep understanding of, and connectivity to, the property conveyancing industry.”
Sympli will offer lawyers, conveyancers and financial institutions a more streamlined and comprehensive technology solution that will seamlessly integrate with clients’ existing practices and systems.
The ASX is also planning a blockchain platform by late 2020 or early 2021 to replace the CHESS system for clearing and settling transactions.
Here’s how the ASX sees the opportunity in property:
The electronic property settlement industry in Australia is estimated to have potential revenues of more than $200 million. Sympli expects to begin operations towards the end of this calendar year.
The ASX expects to invest $30 million in the venture over this and the next two financial years, including $7 million in 2018. The ASX estimates Sympli will break-even in the 2021 financial year.
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