Adam Smith: Leading Saxo Markets Australia into the Future of Finance

Leaders who can navigate complex market dynamics while driving innovation are invaluable. Adam Smith, the Chief Executive Officer of Saxo Markets Australia, exemplifies such leadership. This case study examines Smith’s career trajectory, his impact on Saxo Markets Australia, and his vision for the future of finance. By exploring Smith’s strategic decisions, market insights, and leadership approach, we gain valuable lessons on successfully steering a fintech company in an increasingly competitive and technologically driven landscape. From his early days in institutional banking to his current role at the helm of a leading multi-asset trading platform, Smith’s journey offers a compelling narrative of adaptability, foresight, and strategic acumen in the evolving world of financial services.

Background and Career Path

Adam Smith is the Chief Executive Officer of Saxo Markets Australia, a leading fintech specialist focused on multi-asset trading and investing. Smith brings over two decades of experience in the financial services and technology sectors to his role at Saxo.

Prior to joining Saxo in March 2019, Smith served as the Chief Operating Officer at OFX, an ASX-listed financial services and technology company, for three and a half years. His background also includes senior commercial and operational roles within ANZ Global Markets and Macquarie Bank, both in Australia and Hong Kong.

Smith’s career has been marked by a focus on growth leadership, developing and scaling first-to-market products and platforms into sustainable global revenue lines. He has demonstrated expertise in sales, marketing, product development, technology, operations, risk management, and client experience.

Adam Smith holds a Bachelor of Economics from the University of Sydney and a Master of Business (Finance) degree from the University of Technology, Sydney. This strong educational foundation in economics and finance has underpinned his successful career in the financial services industry.

Leadership at Saxo Markets Australia

Since taking the helm as CEO of Saxo Markets Australia in March 2019, Smith has overseen a strategic end-to-end review of all elements of the business. Under his leadership, the company has delivered scalable revenue growth and introduced cost discipline, putting the business on a strong, profitable trajectory.

Key achievements during Smith’s tenure include:

• Delivering a 4-year revenue CAGR of 19%
• Securing an important B2B2C strategic white label partnership that will increase Saxo Group new client numbers by 30%
• Reducing the cost of client acquisition by 48%
• Improving client satisfaction metrics and conversion rates by 10%
• Achieving increases in client profitability through margin expansion in key product sets
• Successfully navigating the business through a period of significant regulatory change

Vision for Saxo Markets Australia

Smith has articulated a clear vision for Saxo Markets Australia, focusing on democratising trading and investing by providing private clients with the same tools and market access used by large asset managers and financial institutions. He aims to build relationships with other companies delivering financial services, positioning Saxo not only as a provider of market technology but as a true partner who can augment those companies’ value propositions for their clients.

Market Insights and Strategy

In interviews and public statements, Smith has shared valuable insights into market trends and Saxo’s strategic approach:

Investment Landscape

Smith acknowledges the current trepidation in the market but maintains a positive outlook, suggesting that in six to twelve months, conditions may improve. He identifies opportunities in energy companies, logistics companies, and cybersecurity firms as areas where inflation may have less impact on asset valuation.

Diversification

Smith emphasises the importance of diversification, recommending a mix of stocks, bonds, and ETFs to build a strong portfolio. He advocates for a patient, long-term approach to investing, suggesting regular contributions to ride out market fluctuations.

Global Market Access

Under Smith’s leadership, Saxo provides clients with easy access to global share markets, allowing them to invest in international stocks as easily as domestic ones. This global perspective aligns with Smith’s belief in the importance of international diversification for Australian investors.

Education and Support

Smith stresses the importance of financial education, with Saxo providing curated educational content, tools, and research to help clients make better investment decisions.

Future Outlook

Looking ahead, Smith has outlined several key areas of focus for Saxo Markets Australia:

• Launch of Saxo Select: In the coming months, Saxo plans to introduce a managed portfolio solution called Saxo Select. This product will partner with renowned asset managers like BlackRock to offer model portfolios accessible to clients on the platform, catering to investors of varying levels of sophistication.
• Embracing AI and Technology: Smith recognises the potential of artificial intelligence in the financial services industry. He emphasises the importance of using AI responsibly to enhance client engagement and meet their needs effectively.
• Addressing Market Challenges: Smith anticipates potential economic headwinds, particularly in the consumer and corporate sectors. He expects central banks, including the Federal Reserve and the European Central Bank, to implement more aggressive rate cuts than the market currently anticipates in the first half of 2024.
• Focus on Commodities: Smith sees potential upside in commodity prices in 2024, particularly in industrial and precious metals, as well as oil. He believes the world is currently underweight in commodities and expects increased demand as the global economy shifts towards green transformation.

Adam Smith’s leadership at Saxo Markets Australia is characterised by a forward-thinking approach, emphasising global market access, technological innovation, and client education. His extensive experience in the financial services sector, combined with a deep understanding of market dynamics, positions him well to guide Saxo through the evolving landscape of fintech and investment services. As the financial world continues to change rapidly, Smith’s strategic vision aims to keep Saxo Markets Australia at the forefront of innovation and client service in the trading and investment industry.