VC tells fintech start-ups to target superannuation sector
Australian fintech start-ups are being told to focus their efforts on selling services to the $2 trillion superannuation industry in order to attract venture capital funding. Melbourne-based Trimantium Capital is looking to deploy $700 million during the next 12 months into financial services technology, or “fintech”, ventures and its managing director Phillip Kingston said the super industry was in clear need of better technology automation options to lower administration costs and cut fees. “To date most large funds have either shied away from that challenge or tried to undertake large technology projects in house, which typically hasn’t worked out too well,” Mr Kingston said. An attempt by five of Australia’s […]
Why fintech’s herbivores are eating with banks
FinTech Herbivores & Carnivores – a great analogy for those wanting to disrupt and those wanting to co-exist in the financial sector. At FinovateEurope, a start-up pitchfest held in the Old Billingsgate Market Hall on the River Thames in London the week before last, new nomenclature emerged to describe the evolution of fintech disruption. Some of the 70 start-ups in attendance were classified as “carnivores” – disrupters wanting to kill traditional banks. But others were not seeking to attack. They were the “herbivores”. This fintech posse want to work with incumbents, who can provide real-world problems and customers to help the start-ups scale up. Ian Pollari, KPMG’s global co-head […]
Macquarie takes stake in fintech minnow
It’s a positive sign to see Macquarie Group investing more in the Australian FinTech sector. They seem to be getting very active very quickly. It will be interesting to see which of the other big banks will follow suit… Macquarie Group has waded deeper into the fintech sector with an equity agreement with listed marketplace lender DirectMoney to assist in the development of what the minnow claimed would be a new securitisation funding market. In a boost after a bumpy listing in July, DirectMoney yesterday said it had sold $5 million of personal loans to Macquarie and secured the investment bank as an adviser to assist access to funding, […]
What are Robo Advisers?
Robo adviser has become the catch-all phrase for any advice service that employs technology to create efficiencies in the delivery of investment advice and/or management. I had dinner with a mate the other night who works at one of the major banks. As an industry participant, he has a keen interest in the development of robo advice, and the impact it will have on the industry. He asked a surprising question: “So, is it a robot that actually creates the advice?” I thought, ‘Well if he doesn’t understand robo advice, how will the rest of the world make sense of it?’ The important thing here is to understand that robo […]
FlexiGroup first-half cash profit climbs 4pc to $44.3m
Leasing and credit card issuer FlexiGroup has reported a 2016 first-half cash profit rise of 4 per cent to $44.3 million and confirmed full-year cash earnings guidance of between $92 million and $94 million. FlexiGroup acting chief executive David Stevens says big revenue falls in its leasing arm are being reversed and expects strong interest in solar batteries to boost the earnings of its biggest business, Certegy. On Wednesday, the equipment financier and credit card issuer reported a 4 per cent rise in 2016 first-half cash profit to $44.3 million and confirmed full-year cash earnings guidance of $92 million to $94 million. Source: FlexiGroup first-half cash profit climbs 4pc to […]
Fintech sector rejects crowdfunding bill
The fintech sector has taken aim at the government’s proposed legislation on equity crowdfunding, with particular ire focused on the requirement for crowdfunders to become unlisted public companies. The government has received 21 submissions on the Corporations Amendment (Crowd-sourced Funding) Bill 2015 [Provisions], with a number of fintech firms pointing to the bill’s shortcomings. VentureCrowd’s was one of a number of respondents to argue against the requirement that equity crowdfunding recipients be public unlisted companies. “This bill’s requirement that an equity crowdfunding start-up first becomes a public company imposes a significant (and unnecessary) regulatory, administrative and compliance burden on those start-ups,” said the VentureCrowd submission. It went on to point […]
Westpac looks to blockchain, robots and drones in fight for the future
“Blockchain is a technology that is clearly disruptive, but what it will be we don’t know. We do know that $970 million has been spent on blockchain by fintechs,” Curran said. Right now he likens blockchain to Napster – pioneering technology – not necessarily the end point. The tech expo and board update is part of Curran’s bid to ensure he and his team are recognised by the bank as “game-changing technologists”. But it’s not all toys and what-ifs. Tess (Test Enabling Super Simulator) developed in association with tech firm Infosys, is testing new systems and updates – making sure human interfaces such as ATMs, keyboards, note counters and the […]
Sydney roboadvice startup ProAdviser is a cheaper way for millennials to get investment advice
When finding good financial advice is outside your budget, important questions about goals and risks can become hard to manage and execute. Buying based on recommendation means that your needs are met through a wider range of more realistic choices, and a realistic assessment of what your money can do gives you more protection and certainty, but like most things it comes at a price. Sydney startup ProAdviser aims to slash the hefty price of financial advice with an online fund manager and investment adviser. The online platform manages all the trades, investment, and administration for the client. “What we’ve essentially brought to the market is a quicker, cheaper and […]
