Financial Services is booming: 3 small players you need to know

Praemium Ltd (ASX:PPS), Hub 24 Ltd (ASX:HUB) and Rubik Financial Limited (ASX:RFL) could all be poised to benefit from increased demand for their service offerings.

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Australia has a robust superannuation system which has spawned an enormous industry of service providers to cater to the needs of all aspects of this system. Some of these providers are destined to grow quickly as the industry races to keep up with technology and changing demands of its clients.

One exciting area for investors to discover fast growing, smaller financial services companies is amongst the software and platform providers. Here are three companies which just reported good full year results and strong growth.

Praemium Ltd (ASX: PPS) is a provider of wealth management technology solutions. Its products service the needs of financial advisors, accountants, private banks, institutions and investment managers and are delivered both via software-as-a-service and as an investment platform. The group showed very pleasing results for the full year with revenue increasing 28% to $18 million and funds on platforms growing 42% to $2.5 billion. Importantly, Praemium had its first year of positive operating cash flow and management has described the business as approaching an inflexion point.

Hub 24 Ltd (ASX: HUB) operates an investment and superannuation platform which offers a comprehensive range of investment options. Key highlights of the past year have included Hub24's growth in Funds under Administration (FUA) which have soared from $384 million to $991 million. It has also seen a 161% increase in revenue to $3.2 million and the acquisition of Paragem which licenses 20 financial advisory practices that advise over $2.5 billion in client funds.

Rubik Financial Limited (ASX: RFL) builds software for banks. This software helps its banking clients overcome cumbersome legacy operating systems that these large institutions have and allows them to offer many 'new age' services such as internet, mobile and tablet banking services. Unlike Praemium and Hub 24, Rubik is already making profits. During FY 2014 the firm grew revenues 33% to $30.5 million and underlying operating EBITDA by 24% to $8.2 million.

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article.

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