9 Spokes International paves way for strong revenue growth as it expands globally

9 Spokes International Ltd (ASX:9SP) has made an outstanding start to 2018 with the signing of important new partners.

This has included Royal Bank of Canada (RBC) (TSE:RY) where the group is providing a white label version of the 9 Spokes platform for Ownr, a product launched by RBC affiliate, RBC Ventures Inc.

READ: 9 Spokes wins contract with Royal Bank of Canada affiliate

9 Spokes chief executive officer Mark Estall said: “The onboarding rate of small business onto the platform continues to accelerate as our banking partners adoption increases.”

Importantly, this contract builds on a previous relationship where the group was providing the white label platform for RBC’s MyBusiness Dashboard.

9 Spokes has a wide range of products that fit under the fintech banner, but looking at Ownr specifically, it provides new businesses with simple, affordable sole proprietorship business registration and incorporation services.

Broad range of services targeting multibillion-dollar market

9 Spokes provides an online Software-as-a-Service (SaaS) application platform and store, allowing businesses to access a wide-range of third-party applications and online services.

This assists in meeting their needs for core business activities such as accounting, inventory management, booking and scheduling.

Estall said: “We are signing up about 1000 businesses every 5 days, a trajectory we are very happy with.

“We are seeing improved efficiencies in campaigns as well, receiving deep insights into the campaigns and their effectiveness.”

The 9 Spokes platform uses data from these applications to present customers with at-a-glance metrics that monitor and help manage business performance.

The global small to medium enterprise (SME) market for online applications is worth in excess of US$40 billion.

9 Spokes looks to simplify through combining data

9 Spokes has developed technology that simplifies the buying approach and enhances the usefulness of online applications.

It achieves this by extracting and combining the data from multiple applications to give customers better tools with which to run their business.

The 9 Spokes smart dashboard enables SMEs to connect their software to one dynamic interface, giving them a clear overview of their business.

Access through multiple devices

In keeping with the need for mobile access to information, the technology allows users to access data and new metrics across key areas, from any device at any time.

Businesses can integrate their supported software into the dashboard as well as choose from a selection of recommended and accredited apps to suit their industry.

The smart dashboard from 9 Spokes is available as a direct model to small businesses and as a white labelled platform that banking partners can offer to their SME customers. 

Blue-chip client base

9 Spokes’ product offerings have attracted strong interest from major international financial institutions, such as Barclays PLC (LON:BARC) in the United Kingdom.

It has launched the service as a white-label offering to their own SMEs.

Offering services direct to SMEs through 9 Spokes Direct and also through white-label channel partners has been an important part of its success.

Early entry into channel partnerships

9 Spokes delivered on its implementation milestones with Barclays, Suncorp Group ltd (ASX:SUN) and Propel by Deloitte channels, as well as its UK 9 Spokes Direct Platform.

All four platforms went live in 2017 and have proven their worth more than 12 months later.

Each channel represented lengthy, complex technology projects with large, established enterprise partners.

Success at this early stage paved the way for quick progress in terms of winning new contracts, both direct and white label, as well as achieving contract renewals.

READ: 9 Spokes International focuses on building channel partners in the banking sector

The company is also finding that the relationships it has built with major financial institutions and SME’s have resulted in opportunities to upsell new products.

Expanding its position overseas

As well as expanding its relationship with the Royal Bank of Canada, the company has made inroads into other overseas markets.

Estall said: “Our decision to enter the US and Asian financial sectors is proving to be well timed.

“We have received incredibly positive responses from large banks that our proposition is well positioned to serve their requirements.”

In Asia, the company signed a Memorandum of Understanding with the Overseas-Chinese Banking Corporation (OCBC) (SGX:039).

OCBC is the second largest Singapore bank with a market capitalisation of about Sin$53 billion.

With the Australian dollar and the Singapore dollar broadly at parity, this illustrates the size of the organisation.

Bank of New Zealand comes on board

In March, the Bank of New Zealand (BNZ) signed a contract with 9 Spokes for the group to provide a white label version of its platform.

READ: 9 Spokes signs contract with Bank of New Zealand, hits revenue guidance

The BNZ contract will see the 9 Spokes platform integrated into the BNZ’s business banking customer journey.

BNZ is a wholly-owned subsidiary of National Australia Bank (ASX:NAB) and it is the first Australasian bank to partner with 9 Spokes.

The bank has more than 130,000 small and medium business customers.

From a financial perspective, the contract resulted in management meeting the range of annualised recurring revenue (ARR) guidance for the March quarter of between NZ$6 million and NZ$7 million.

ARR supported by established licence fees

ARR growth in 2018 will be anchored by licence fees from RBC and the Bank of New Zealand.

Given the former only went live on November 1, 2017, it will make a much larger contribution in the coming 12 months.