Property Exchange Australia (PEXA), which has positioned itself as ‘the ASX for property settlements’, is facing a significant threat to its monopoly over the market from a potential new joint venture.
PEXA is currently the only company in Australia licensed to settle property transactions electronically through its ELNO (Electronic Lodgement Network Operator) platform.
However, it has been revealed that fast-growing e-conveyancing technology company InfoTrack has partnered with the Australian Securities Exchange (ASX) to consider launching a rival ELNO by the end of 2018.
The Australian Financial Review has noted that while PEXA has a “clear first mover advantage” and backing from the likes of the big four banks, Macquarie and state governments, ASX represents “credibility and experience in clearing and settling transactions” while InfoTrack is “not just any new entrant” – it’s one of four conveyancing software providers driving conveyancers to PEXA’s platform (the others being GlobalX , SAI Global Property and Equifax).
In an email announcing the potential venture to their clients, InfoTrack CEO John Ahern and Chairman Stephen Wood advised that their company’s ELNO would “support Australia’s move to electronic settlements by: giving market participants choice and the benefits that flow from competition; improving reliability of the marketplace by eliminating single party risk; and delivering on the anticipated efficiencies of electronic settlements and lodgements”.
Dynamic Business has reached out to PEXA for comment.