Australia's online broking market ripe for consolidation - and not everyone will survive
Stake's new CEO, and the bosses of Selfwealth and Spaceship told Capital Brief consolidation is likely in the sector, which exploded in popularity during the pandemic.
The new CEO of low-cost online share broker Stake, Jon Howie, is tipping a wave of consolidation and potential failures in the industry over the next two years, in a hangover from the COVID-era boom for share investing.
“We think there’s probably going to be consolidation over the next year or two, there will be some businesses that make it and some that don't,” Howie told Capital Brief.
The alum of BlackRock and Macquarie Bank, who replaces founder and major shareholder Matt Leibowitz in the role, expects Stake to find new growth as more people buy ETFs through brokers and “intergenerational transfers of wealth” force young adults to think about their finances more productively.
He is not alone in predicting consolidation. Contacted by Capital Brief, the chief executives of ASX-listed Selfweath and privately held Spaceship expressed similar sentiments on the issue.
