Property Exchange Australia - Innovator of the Year
Company: Property Exchange Australia Ltd, Melbourne, VIC, Australia
Company Division/Group: PEXA Ltd
Company Description: PEXA is the world's first online property exchange platform allowing property transactions such as refinancing, caveats and transfers to be completed electronically. With interfaces into five jurisdictional Land Titles Offices and more that 115 financial institutions and 4000 legal firms customers, PEXA has revolutionised the way property is transacted in Australia.
Nomination Category: Management Categories
Nomination Sub Category: Innovator of the Year
Nomination Title: PEXA CEO Marcus Price revolutionises Australia's $6.7T residential property market, providing Australians with a safe and more efficient property exchange process
Tell the story about what this nominated person has achieved since 1 January 2016 (up to 650 words). Describe the impact he or she has had on your organization. Focus on specific accomplishments, and relate these accomplishments to past performance or industry norms.
Marcus Price is the CEO and Visionary behind Property Exchange Australia – the world’s first online property exchange platform. An influential business leader, specifically in the start-up space, Marcus saw an opportunity to bring both public and private sectors together in creating an online system which allowed lawyers/conveyancers and financial institutions to transact property together online, a venture many had tried (and failed) to achieve in the 30 years prior.
While take-up was strong, early adopters found little joy in being the first to “go digital”. To be a truly effective exchange, all parties to a transaction needed to be part of the online network. This became an early point of contention as customers were forced to maintain processes and resourcing around both manual and digital property settlements.
By early 2016, Marcus realised a new approach was required. It wasn’t the property business we were in, it was the exchange business, which by its very nature depends on the network. With half the market happy to stick in the “horse and buggy” era, bringing the rest of the market onto PEXA was the biggest challenge, and one not easily solved.
To disrupt Australia’s centuries old banking sector was not only going to required serious legislative change but an unprecedented level of collaboration between the individual governmental jurisdictions.
Consensus among this diverse group required an innate understanding of how each operated, their motivations, the technical parameters within which a fully digital environment would need to function and, importantly, how Australia’s major banks and legal firms would respond to the complete digitisation of Australia’s $6.7T property industry.
Sacrificing short term revenue, Marcus pulled together a team of people to research and model scenarios in which a fully digital property transaction environment commercially benefited all participants, including the Australian public.
It quickly became clear that the jurisdictional Land Registries should themselves, rightly, be financial beneficiaries of an online property ecosystem, and the removal of costly dual-processing by way of a complete transaction to digital would provide that benefit to all parties. In that knowledge, Marcus made his approach.
The first win came in mid-2016 when the State Government of Victoria announced plans to digitise all land titles, paving the way for a truly end-to-end digital property settlement process. Buoyed by the success of a seamless transition, the Government pressed ahead, announcing a firm timeline for the transition from paper to electronic conveyancing. The Governments of NSW, WA and SA followed-suit.
These successive announcements served as a litmus test for how industry would respond to changes to the 200+ year old Torrens Titling System; a shift of monumental magnitude.
Indeed, these announcements provided great confidence to the 115 active financial institutions and 4000 legal/conveyancing firms that digital was the way to go, removing ambiguity around “best practice” for property transactions while eliminating costly dual-processing.
In advance of full electronic conversion:
90% of standalone transactions completed online through PEXA
50% of refinance transactions completed online through PEXA
By moving property transactions online, Australians now benefit from a faster, safer and more efficient property exchange process, free from delays caused by manual errors which previously impacted a third of all settlements.
In turn, Marcus’ ability to expedite the digitisation of industry gave the board and its shareholders significant confidence in the direction of the business and his ability to affect change. To that end, Marcus led two successful capital raises over the past 18 months, bringing more than $150m of capital into the business.
Ask Marcus what he thinks about the significant impact he’s had on industry and he’ll tell you “the job’s not done”
Marcus is currently working with not-for-profit group ‘Homes for Homes’ building in the capacity for lawyers and conveyancers to make small financial donations when competing a transaction on PEXA. These funds go directly into the build of affordable housing for Australia’s homeless – a “lasting and critical legacy"
In bullet-list form, briefly summarize up to ten (10) of the chief accomplishments of this nominated person since the beginning of 2016.
* Raised more than $150m in funding through two successive capital raise exercises leading to an independent market valuation of $839m, up from $500m in January 2016
* Created a commercial case for each individual Australian Land Registry to digitise the property exchange process
* Hard-wired PEXA into the DNA of the country by integrating directly into five jurisdictional Land Registries, and Australia's major banks
* Drove a 50% reduction in the time taken for a property to settle
* Doubled the number of property settlements an individual employee can process per day
* Drove $50B in property value through the online network
* Launched the platform into a fifth State - South Australia
* Oversaw a 650% increase in growth in the number of property transfers completed online (June 2016 - June 2017)