Insurers brace for mega fintech shake up
The insurance industry has largely remained the same in the past 100 years, but the sector is in for its biggest shake up as investors continue to pump billions of dollars into “insurtech”, fuelling sweeping changes through technology. Insurance is the second most disrupted industry today thanks to a growing number of start-ups and technology companies eyeing slices of the insurance pie. Research from PwC found that the global insurance industry ranked second only behind media and entertainment as the industry that is most significantly affected by technological change. And Australia, where the general insurance market is dominated by players such as Suncorp Group, IAG and QBE Insurance Group, is […]
UK experts kick off week of FinTech in Australia
Chris Woolard and Shaul David bring cutting-edge insight and expertise on FinTech regulation and innovation to Australian audiences. Chris Woolard, Director of Strategy and Competition at the UK’s Financial Conduct Authority (FCA), and UK Trade and Investment’s FinTech specialist Shaul David are in Australia this week to take part in a range of events to strengthen links with the Australian FinTech community. Both visitors spoke at UK Trade and Investment’s sell-out event on FinTech Innovation and Regulation at Sydney’s FinTech hub, Stone & Chalk, this evening. The event attracted over 150 of Sydney’s brightest in FinTech and focused on navigating the regulatory challenges facing both Australia and the UK. Earlier […]
Mobile payments: A haven for big players
Disruption, that pervasive buzzword in fintech, is usually attributed to startups competing with the big players. These companies are small, agile and new to the market. They bring new technology and ways of doing things, and are quick to adapt. But what happens when it’s these bigger players, such as the traditional banks, that introduce the disruptive technology? PwC recently released its Global Fintech Report, which surveyed various people working in global financial services. The respondents identified fund transfers and payments as the sector second most likely to be disrupted by fintech over the next five years. However, it seems that established companies are responsible for most of […]
AWI buys Eureka Report
Paul Clitheroe’s Australasian Wealth Investments has purchased News Corp Australia’s investor advice newsletter and website Eureka Report. AWI will add the Alan Kohler-founded Eureka Report to its stable which includes InvestSMART and Intelligent Investor. The sale price was not disclosed. “I’ve always admired Eureka Report for its exceptional ability to connect with private investors across Australia; we know the publication will thrive afresh under this new structure”, Mr Clitheroe, who is chairman of AWI, said. Mr Clitheroe, a financial analyst and TV presenter, best known for hosting former Nine Network program Money, says the takeover of Eureka Report is part of his plan to ride the wave of a tech-driven […]
Ron Brierley backed fintech Afterpay oversubscribed
The bookbuild for Afterpay, the fintech start-up backed by corporate raider Ron Brierley and a host of alumni from his former Guinness Peat Group, has closed up to four times oversubscribed ahead of its listing on the Australian Securities Exchange next month. Afterpay is raising $25 million but had commitments for up to $100m in the process being run by Bell Potter and Wilson HTM, as first revealed by DataRoom yesterday. The company, which facilitates online transactions for consumers and merchants by providing a real-time, buy-now, pay-later credit service, has more than 40,000 end customers, up from 4000 last June. It has underlying annual sales of more than $30m. The […]
Alternative finance booming in Australia
Australia’s alternative finance lending market is the third largest in Asia Pacific after experiencing growth of 320% in 2015. According to a new survey, Harnessing Potential, Asia Pacific Alternative Finance Benchmarking Report, Australia’s alternative finance lending market ballooned to US$348 million in 2015. Australia was trailing China, which reported US$101.69 billion over the same period, and Japan, which reported US$360 million. The largest share of Australia’s alternative finance market volume was balance sheet business lending, which accounted for over US$120 million in 2015. This was followed by invoice trading (US$105 million) and marketplace/P2P consumer lending (US$43m) in 2015. Marketplace or P2P business lending volume reached $7.05 million in 2015. Source: […]
Robo advisers keen for improved regulation
Digital advice providers have given the thumbs-up to proposals for clearer regulations governing the sector, suggesting they would improve the legitimacy of the burgeoning industry. Josh Golombick, co-founder of robo advice provider CapitalU, said regulation from the Australian Securities and Investments Commission will “really put the spotlight” on robo-advice. “Maybe a lot of people may not have even heard of robo advice before this regulation came out – it just legitimises it further,” he said. Digital or robo advice involves the provision of simple to complex financial plans which are created using algorithms and technology. Research by KPMG show robo advice platforms will manage around $US2.2 trillion worth of assets […]
Robo advice might not suit every SMSF but has its place
It seems oxymoronic for self-managed super fund investors to seek robots to do the investing for them. After all, SMSF members are supposed to be self-directed investors – they do their own investing and are not supposed to use a machine to pick their investments. But experts say SMSF members will increasingly turn to robo advice to help them select the right assets for their fund. Robo advice involves the use of an algorithm to suggest investments for consumers, using variables like their age, existing funds, income and time to retirement. It has been touted as a low-cost way for people with a relatively simple financial situation to receive financial […]
