Banks still beat fintech firms on trust
Australia’s big banks have some breathing room compared to global markets when it comes to financial technology competitors but more needs to be done, according to a new report into world banking trends. Australia is slightly behind when it comes to picking up financial tech products, but those using them are far more likely to recommend them to friends, according to a 2016 World Retail Banking Report. The report suggested real strength could be found in collaborations between tech firms and banks. “Where they (banks) were strong in some areas, fintechs were strong in others and there was a real opportunity to partner,” Sharon Rode of consultancy firm Capgemeni told […]
RateSetter hits $1m in interest payments
RateSetter, which facilitates small loans between retail lenders and “over 2,000 creditworthy borrowers”, has announced it has now paid out $1 million in interest payments to lenders. The fintech platform has facilitated $35 million in loans, with defaults representing “less than 0.19 per cent of loans funded” (ie, less than $65,500). RateSetter also operates a ‘Provision Fund’, funded by borrowers, which ensures “investors have received every cent of principal and interest due to them”. The Provision Fund currently contains more than $1.4 million, according to RateSetter. RateSetter chief executive Daniel Foggo said reaching $1 million in interest paid is a “significant milestone” for the company. “With interest rates at record […]
Cyber security has become an economic imperative
Cyber security is an economic imperative. It is key to the protection of organisations of all sizes, to the personal data of our people, and to ongoing jobs growth and wealth creation. After all, a robust and thriving digital economy is built on trust. The Australian financial services industry, perhaps more than any other, has the most to gain from a strong and innovative national cyber security eco-system. The sector has a more mature understanding of cyber risk than other industries, and with a major shift towards digital and mobile engagement with customers, now more than ever it has the motivation to invest and develop capability in this area. In […]
Apple Pay may be coming to Australian banks
Reports have emerged that ANZ Bank are currently testing Apple Pay’s paymemt technology. Although the mobile payment service was launched in Australia late last year, only American Express card holders were able to access the service. Neither tech giant Apple, nor ANZ bank have confirmed the speculation, however some bank customers are reportedly receiving confirmation emails and text messages that suggest the bank is testing both Apple and Android Pay functionality. On the other hand, on a recently blog post, Google has said that its service, Android Pay was coming to Australian banks, including ANZ, St. George and Westpac “some time in the first half of 2016.” Source: East & […]
Fintech threatens Australia’s biggest banks – Roy Morgan Research
The global fintech phenomenon threatens Australia’s traditional banks by stealing their most valuable customers. This new digital market is growing exponentially leaving traditional banks looking dangerously like commodity utilities. According to Accenture investment in fintech grew globally by 201% in 2014. [1] Australia has the fifth highest rate of fintech use in the world. [2] Fintech is the digital, often peer-to-peer, channel enabling tech-savvy consumers to borrow or invest without ever having to deal with a traditional bank. In early April Australian peer-to-peer start-up SocietyOne reportedly reached $100m of loans on its digital platform. The burning question for the traditional Australian banks is, which of their customers are most at […]
Forget Melbourne v Sydney, Australian fintech must take a global view
In 1901 there was such a massive spat between Sydneysiders and Melburnians over which city should be capital of the newly federated Australia that a whole new city (and territory) was formed. Fast forward more than 100 years and nothing has really changed. Squabbling continues around everything from which city has the better cuisine to which has the better events. All good, natural competitiveness, but then last year it encroached on one of our most promising industries – the emerging fintech startup ecosystem. This Sydney-Melbourne fintech civil war risked diverting founders and investors away from the global opportunity. Domestic squabbling was followed shortly by another irrational fear of overseas markets […]
Accenture calling for fintech entrants
Fintech startups are being asked to apply for a place in a 12-week program that will see the young companies gain exposure to executives at big global banks. Accenture is taking applicants for its third annual Asia-Pacific FinTech Innovation Lab, a program for entrepreneurs that are developing technologies for the financial services sector. It focuses specifically on new technologies in the areas such as big data, analytics and cognitive computing, security and identity management, risk management and compliance, blockchain technology, and Internet of Things applications. Accenture says investments in Asia-Pacific fintech companies are on the rise, totalling $2.7 billion in Q1, 2016 – representing 51 per cent of the $5.3 […]
Growing pains: Peer to peer lending hits puberty
The eye-popping climb in the number of people attending the LendIt USA conference over the past four years reflects a real coming of age for peer-to-peer lending. The first, in 2013, attracted 300 delegates. The second lured in just under 1000, while 2500 attended in 2015. Last week, the number swarming the Marriott Marquis hotel in San Francisco was nudging 4000. Peer-to-peer lending (also known as “marketplace lending” to reflect the large proportion of funds that come from institutions rather than retail investors) matches borrowers with yield-hungry investors on an internet platform. A decade since it was born in the United States, marketplace lending is now mainstream. In the past […]
