9 Spokes International Ltd (ASX:9SP) is looking to take a focused approach to its banking sector services offering.
The company has forged relationships with large financial groups in Australia and internationally.
These include Barclays Bank (LON:BARC), Deloitte UK and Royal Bank of Canada (TSE:RY).
Directing resources toward building banking partnerships
In line with this strategy, 9 Spokes has ended its Platform Channel Licence Agreement with Suncorp Corporate Services Pty Ltd.
This was a mutual decision and clearly reflects the company’s focus on its existing and new partnering opportunities within the banking sector.
READ: 9 Spokes International poised to win more banking clients while reaffirming guidance
Change represents less than 1.5% of customer base
Given the significant adoption the platform has achieved from its banking partners, the Suncorp decision represents less than 1.5% of the total platform customer base.
The total platform base as at January 30, 2018 was 39,000.
Exiting agreement results in reduced costs
Exiting the Suncorp Licence Agreement will also result in a reduction in costs.
Notably, these were higher than expected and exceeded revenues received from the agreement over the last 12 months.