Pinnacle Investment Management has invested $3 million to become the lead investor in the $5.5 million fundraising round just completed by Melbourne-based financial technology OpenInvest.

Pinnacle’s interest in OpenInvest was sparked by the latter’s new “in-house” technology platform, which allows asset and wealth management firms and stockbrokers to offer their own digital investment solutions to retail investors.

As part of Pinnacle’s significant investment, the firms agreed to this OpenInvest will deploy a digital investing solution for Pinnacle, which the latter believes will help it bridge the growing “advice gap”.

"With the introduction of increased regulation following the Hayne Royal Commission, the exit of the big banks from the wealth management sector and the continued decline in the number of licensed advisers, there is a growing 'advice gap' in this country," said Pinnacle's director and head of trading retail, Ramsin Jajoo.

“There are many Australians who would like to access professional investment help but find it too expensive to get personal financial advice. OpenInvest's technology will allow us to more easily help these retail users access our fund management expertise,” noted Mr. Jajoo.

OpenInvest's white label partners include wealth management firms Hamilton Wealth Partners, Wentworth Securities and Collins House Private Wealth and asset managers SG Hiscock and Blackmore Capital.

Speaking about the platform, OpenInvest co-founder and CEO Andrew Varlamos noted it was a "logical way" to provide professional expertise to the wider Australian retail investor market.

"The current zeitgeist - the proliferation of online trading apps, with extensive advertisements that trading is fun and easy - is not healthy and will not continue.

“Trading stocks, CFDs or crypto is not the same as investing and the data shows that most amateur traders lose in the long run. The OpenInvest team is motivated by a commitment to bring trusted, experienced and dedicated professionals like Pinnacle within reach of all Australians.”

Maja Garatsa Djurdjevic

Maya's career in journalism spans more than a decade in finance, business and politics. Now an experienced editor and reporter in all elements of the financial services sector, before joining Momentum Media, Maya reported for several established news outlets in South East Europe, looking at key processes in post-conflict societies.