FinTech

Feb
23

Reserve Bank says Australian dollars could come in digital form in future

Death of the cheque and the rise of Bitcoin? FinTech is certainly gaining momentum in Australia with the RBA hinting at digital dollars, or a form of Bitcoin, in the future is quite a possibility.   It is entirely possible that Australian dollars will come in digital form in the future, breaking the link entirely between material notes and coins, the Reserve Bank says. In a speech where he also flagged the end of the cheque, Mr Richards said the RBA had been watching the growth in demand for privately-established virtual currencies like Bitcoin, and believed there was a place for a central-bank-issued digital currency in Australia. It thinks digital […]

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Feb
23

How fintech is helping peer-to-peer lending disrupt the Big Four

When talking about fintech, the word disruptive is thrown around a lot. However, the two terms don’t go hand in hand. A company can create fintech without being disruptive, and a company can have disruptive ideas without the technology to back it.   What makes a disruptive company? Is it simply operating in a technological industry? Is it being part of a business that produces an innovative product? Or is is something else?   Looking at peer-to-peer (P2P) lenders, it’s tempting to consider the entire industry as “disruptive”. Peer-to-peer lenders link individuals willing to lend money with people seeking finance, using online platforms to create connections that would never exist […]

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Feb
23

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 […]

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Feb
22

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 […]

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Feb
20

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, […]

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Feb
18

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 […]

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Feb
18

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 […]

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Feb
17

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 […]

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