How did Finax do in the second year of its existence?

In the second year of its operation, Finax once again managed to achieve the ambitious plans that we have set. The number of clients and total assets under management have met the expected targets. We are publishing detailed results of Finax and also some interesting statistics of our investment activities.

Radoslav Kasík | Our results | 24. February 2020

During the foundation of Finax, we have committed ourselves to disclosure of the results of our activities, plans and objectives in greater detail, as is customary in publicly traded companies. We want to transparently inform our clients and partners, beyond our legal obligations as an investment firm.

Knowing your partner is essential in order to gain trust. From the beginning, we entered the market with full transparency and we will keep our commitment. 

Similar level of transparency, beyond the legal obligations, is not common among financial institutions in the Central European region. In addition to trust building, our goal is to put pressure on the entire financial sector to start acting more client friendly, which would ultimately benefit all local investors.

At the beginning of last year, we published our plans for 2019. We disclose our results and the revelation whether we managed to achieve our last year goals. The evaluation of product, technical and operational goals, together with the 2020 plans can be found in separate article.

The year 2018 for Finax is the year of establishment and market entry. In the first few months, we were fine-tuning our product, finishing the website, resolving technical difficulties, and choosing the marketing strategy.

The second year of our existence, 2019, is perceived as a year of establishment. Finax plays an important role on the Slovak market and caught the attention of Slovaks. Our brand is starting to be more and more recognized, as the traffic of our website shows. Last year, it averaged around 30,000 monthly users.

Total assets under management

  • We finished the year 2019 with the total assets under management being 20,2 mil. euro, which represents an increase of 597% and the fulfilment of the goal to 101% (target was 20 million euros).
  • The market development, i.e. their strong growth last year, has certainly contributed to our primary goal.
  • In less than two years of our existence, we have earned our clients more than 1.2 mil. euros.

Number of clients

  • The number of active clients (activated contracts with funds in the account) reached 3846 at the end of the year, which represents an increase of 464% and fulfilment of the goal to 110% (target was 3500 active clients).
  • The total number of contracts concluded reached 4593. The share of unfinished contracts, accounts to which funds were not sent or the client's identity was not verified, represents a decent 16.3%.
  • The share of foreign clients with permanent residence outside the Slovak Republic is 2.9%.

Source of client acquisition

  • We offer our services through the direct online sales (registration through our website) or through external sales via financial agents (tied or independent).
  • The share of external sales, i.e. the share of contracts concluded through financial agents in the total number of contracts, was 47.8%, which represents an increase of more than 10 percentage points compared to 2018. This was an expected result as it reflects the expansion of financial intermediary partner networks.
  • At the end of the year, we had concluded cooperation with 21 agents, of which 14 were independent financial agents and 7 were tied investment or financial agents. The number of partners increased year-on-year by 40%.

Client and account profile

  • Finax succeeds in mainly reaching the younger generation, which correlate with our product setup, i.e. it is offered online and the marketing strategy uses primarily digital tools.

  • The average client deposit, over the entire existence of Finax, is € 597, taking into account both one-time and regular deposits.
  • The average target amount in the accounts, where it is set up, and which Finax clients would like to achieve by investing is € 85,986.
  • The average Intelligent Investor strategy is based on the average of accounts 77:23 (equities: bonds) and an asset-weighted average of 70:30. This represents a relatively dynamic portfolio, in line with our focus on medium and long-term investments and the treatment of clients' financial goals with an investment horizon of 5 years or more.

  • The most common reason why clients invest with us is wealth building, followed by retirement savings and savings for children.

The year 2019 was not an easy one. In Finax, all its employees and representatives invested truly an enormous effort and a lot of time, which is reflected in the satisfaction of our clients and especially in the results we achieved.

We are pleased that in the second year we also managed to fulfil virtually all of our ambitious plans. For our plans to be successful, there was a lot of work needed from every single person involved.

We are grateful to all of our Intelligent Investors, supporters, partners and employees for their trust and cooperation. We are confident that we will continue to satisfy your high demands and stay ahead of the competition.

This is the only way how we can fulfil our mission, which we set up at the beginning of Finax, to bring an effective investment tool to the Slovak market, to teach Slovaks how to invest correctly, to increase their financial education and to make them more wealthy and financially independent.

Thank you.

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