Just don’t call us payday lenders
More than 20,000 Australian small business owners have trouble accessing finance (Deloitte Access Economics). Are they denied access because they aren’t good candidates for loans? Yes, in some cases. However, a significant number (37%) of these businesses are denied finance because they don’t have collateral (be it a home or considerable assets) to secure a loan against. Interestingly more than 40 per cent of rejected applications examined by the NSW Business Chamber were for amounts less than $100,000 – it seems traditional providers aren’t interested in small loans, or small business. Archaic systems and processes which serve the interests of incumbent big business are being dismantled in the current global […]
Big banks are closing their ranks to fintech
Australia’s largest financial institutions are turning away from the fintech scene they have worked hard to embrace. Australia’s largest banks have been turning their backs away from fintech in recent weeks, with the issue of data sharing again causing a rift between the established institutions and their tech counterparts. A tumultuous few weeks fighting over Apple Pay has culminated in one of the Big Four turning its attention back to a different area of fintech. The Apple Pay saga At the end of July three of the Big Four banks – Commonwealth Bank, NAB and Westpac – along with Bendigo Bank and Adelaide Bank applied to the Australian Competition and […]
Online fintechs Prospa and Reckon bypass banks in new partnership
The partnership will allow Reckon customers to apply for small business loans through Prospa. As banks are entering new partnerships with smaller fintech companies seemingly every week, today online SME lender Prospa has announced a partnership with accounting group Reckon. The new product, Reckon Loans, will be facilitated by Prospa and allow Reckon’s customers to apply for loans of between $5,000 and $250,000. Reckon Group COO Dan Rabie said the aim was to leverage data to make the credit process easier. “Fintech disruption has changed the business lending game, with online entrants challenging the traditional providers of bank finance by introducing new cash-flow financing options for SMEs.” “Data from accounting software […]
EY to partner with fintech hub Stone & Chalk
Ernst & Young (EY) has today announced a corporate partnership with Sydney fintech hub Stone & Chalk. The aim of the partnership is to provide professional advice, support and experience to Stone & Chalk’s startup members. EY’s fintech leader for Australia Anita Kimber explained the importance of getting involved with the fintech community at a grassroots level. “There are obvious synergies in linking innovative fintech startups with larger corporates, particularly given the appetite for new partnerships and M&A,” she said. “There is a massive opportunity here for Australian fintech entrepreneurs to be at the forefront of this trend, but they need access to global markets to reach their next stage […]
What a peer-to-peer business loan looks like
RateSetter’s most recent release of its loan book data reveals the new age of business lending. In the one month since the launch of its business lending arm, peer-to-peer (P2P) lender RateSetter has funded nearly 100 business loans. The latest release of its loan book data, which includes every loan originated through RateSetter since its launch in later 2014, includes these business loans, and provides us with a snapshot of what alternative business finance looks like in Australia. Business owners have been embracing lenders outside of the Big Four and other more traditional lenders. According to a recent survey by eBroker, more than $1.1 billion worth of loan applications has […]
Examining the fintech appeal of business lending in Australia
A question often asked in the fintech space is, “Which area of fintech has the greatest potential?” The answer invariably sticks with the obvious – insurtech, blockchain, mobile payments, peer-to-peer lending and banking – and while focus to these areas is deserved, business lending has been exponentially gaining steam. Lenders are flocking to the market and it seems every week there is a new entrant, partnership or innovation. The online business lending space is full of diversified products and lenders are constantly looking for new ways to benefit business borrowers. The market is becoming flooded by choice. So, what is the appeal? It’s simple. The space exemplifies fintech as it […]
How fintech has given invoice financing new legs to stand on
Is invoice financing the way to secure the future of online SME lending? Online fintech financier Skippr talks to finder.com.au. Invoice financing may be soon gaining steam with small businesses thanks to a fintech makeover. Skippr is an innovative cash management platform that offers invoice financing and cash flow forecasting. For businesses looking for an invoice financing solution, Skippr’s latest product could be what they need. Fintech, or financial technology, has always been an enabler. Whether it’s been opening the door for risk-based rates in Australia, giving savers a way to earn high rates on relatively low-risk investments, or letting small- to medium-sized enterprises (SMEs) access capital that they previously […]
Xero joins with Wells Fargo to bolster financial web
PRESS RELEASE: The combination of limited access to capital, complex and time consuming financial processes, and the lack of confidence in business data has stifled growth and job creation in small businesses – the biggest sector of our global economy. But the financial web, which incorporates a network of organizations sharing financial data, promises to connect financial institutions and small business owners, unlocking massive productivity and growth. Today, we announced an integration with Wells Fargo, a top bank serving more than three million small businesses and one in three households in the United States. This is an exciting milestone for us in the U.S where we can connect small businesses […]
