Rubik posts strong revenue growth in mortgage tech

Finance software provider Rubik Financial has announced strong revenue growth in its banking and mortgage products during the first half of the 2015-16 financial year.

The group’s banking products saw a revenue increase of 25.3 per cent to $7.15 million in the six months to 31 December 2015, compared to the same period a year earlier. The group said in an ASX statement that the growth was due to an increased focus on service fees and select banking products (CWS and DriveOnline).

Rubik’s mortgage software suite grew 17.6 per cent in revenue over the period to $3.61 million, which the group said was largely as a result of service fees on anti-money laundering projects related to its eLodge+ product.

Rubik’s wealth products experienced a revenue decline of 8.4 per cent to $10.1 million, which was “mainly due to the transition of Coin from a license software model to a SaaS subscription model by a major financial institution”, according to the group.

Rubik’s overall revenue increased by 5 per cent over the period to $20.83 million. Wealth products contributed 48 per cent of the group’s total revenue, while banking products contributed 34 per cent and mortgage products contributed 17 per cent.

Rubik CEO Iain Dunstan said an increased focus on opportunities in the banking sector over the past 12 months has helped improve the group’s total revenue, “as well as more evenly balance the business across the three main segments of wealth, banking and mortgages”.

“We have also focused on our corporate restructuring, which is now complete, the establishment of our offshore development and testing centre, and the consolidation of our data centre infrastructure,” he said.

“As a result, we anticipate that cash flows will return to positive during this calendar year, and we’re on track to build our professional services capability to better service clients and create additional revenue.”

[Related: Rubik announces new CEO]

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