- Fintech company Identitii (ID8) is reducing annualised costs by $3 million as part of its One Platform strategy
- This strategy is designed to consolidate the products and platforms the business supports to onboard customers to a single, cloud-based data platform
- It will essentially see Identitii reduce its reliance on the low-margin legacy technology it says is holding back growth
- The company says this will increase productivity and reduce headcount and operating costs to enable a “leaner and faster” operating model and accelerate growth
- ID8 shares are up 2 per cent to trade at 5.1 cents at 1:32 pm AEDT
Fintech specialist Identitii (ID8) expects to reduce its annualised costs by $3 million as part of its One Platform rationalisation strategy.
One Platform is Identitii’s way of consolidating legacy technology debt from previous operations and onboarding customers to a single, cloud-based data platform.
The strategy is aimed at accelerating growth by increasing productivity and reducing headcount and operating costs to enable a “leaner and faster” operating model.
It will essentially see Identitii reduce its reliance on the low-margin legacy tech it says is holding back growth
Identitii spoke about the strategy in its FY22 annual report webinar and outlined that it was designed to reduce the number of products and platforms its business supported so it could enact a new target operating model.
“These are difficult but necessary decisions, and it is vital we continue to invest for growth that provides long-term sustainability for the company and the best outcomes for shareholders,” CEO John Rayment said.
“Our people are our biggest asset, and we will support all of our team members through this period of change.”
The company expects the $3 million savings to be fully realised next quarter and to extend its cash runway into early FY24. These cost savings represent a 36-per-cent reduction in net cash outflows from last financial year.
Identitii was established in 2014 to “bridge the gap” between the increasing demand from regulators and customers for more information on financial transactions and the technology systems that make it difficult to find and share that information.
ID8 shares were up 2 per cent to trade at 5.1 cents at 1:32 pm AEDT.