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 […]
Ken Henry says NAB has strong capital and is ready to embrace fintech future
“If digital innovation leads to more efficient ways of achieving credit intermediation, we are in a strong position to embrace those new efficiencies. Maybe the whole sector becomes more efficient. If it does, our customers will benefit. “The establishment of NAB Labs, an innovation lab in Melbourne, and NAB Ventures, a corporate investment fund to invest in start-ups, aims to imbed an innovation culture across the bank, Dr Henry said, while also providing access to cutting edge ideas where they are emerging globally. “We are not sitting on hands here. We see [fintech] as both interesting, and an opportunity for us to do what we currently do better and for […]
Australia’s top 32 start-up tech successes and why they matter
Want to start the next billion-dollar tech company? You need to be male, in your mid-30s and only two or three years into running a start-up. Not-for-profit organisation StartupAus has compiled a list of Australia’s tech successes over the past 13 years, featuring businesses with valuations in excess of $100 million. The list of 32 companies, which forms part of a report compiled with the University of Technology, Sydney which is due to be released early next year, features known successes Atlassian, Campaign Monitor and Catch Group, but also a number of lesser-known companies which are on track to become the next success stories, or “unicorns”. Lesser-known businesses such as […]
MoneyPlace second Aussie P2P lender for mums and dads
Melbourne start-up MoneyPlace became the second Australian peer-to-peer lender to open its virtual doors to mum and dad investors on Monday. The company, led by former NAB banker Stuart Stoyan and backed by Westpac’s former head of retail banking Rob Coombe, provides a platform for investors to make personal loans. Borrowers can get loans of between $5000 and $35,000 for terms of three to five years directly from individual lenders via MoneyPlace at rates starting at 8.99 per cent. It claims investors can earn returns from 7.8 per cent. After two years building MoneyPlace, including a 13-month approval process with the corporate regulator, it “matched” its first loan last week. […]
Five bank fees likely to disappear thanks to technology
WHEN you look closely, you may be surprised at how many bank fees, charges and costs you incur; as a result of their cosy oligopoly, Australian banks have become the most profitable in the world, collecting $29 billion in profit in 2015 or $1600 from every adult Australian. This financial year, bank profits are expected to top $30 billion after Westpac, CommBank, NAB and ANZ all raised interest rates outside of the RBA cycle, adding an estimated $1 billion to their bottom lines. But have you ever wondered why certain charges exist at all – or what could be done to get rid of them? A new breed of technology-focused […]
Peer-to-peer lenders attract investors with double-digit returns
Savers are earning almost 10 per cent a year by lending online through banking’s answer to eBay. Peer to peer or P2P lenders, to use their cyber-savvy name, are auction sites for potential lenders and borrowers who bid an amount and an interest rate. The biggest are RateSetter, aimed at ordinary investors, and SocietyOne, which caters for professionals. The most common reason borrowers apply for a peer-to-peer loan is to buy a new car. Both run the credit checks for you. Still, it’s a big jump from investing in a government-guaranteed term deposit to an unsecured loan to somebody you don’t know and never will. But so far the risk […]
Why these giant Chinese companies could destroy Australia’s fintech ambitions
Fintech companies are some of the hottest startups around right now. Incredibly, more than 20 are now valued over $US1 billion. Australian credit reference fintech, Veda, might get bought for $2.2 billion. The possibilities offered by fintech are enormous. Mobile payments, payment terminals, smart contracts, smart bonds, P2P lending and crowdsourcing are all examples of new technologies that pose a risk to core services provided by the financial establishment. This is why they want in. According to some, Australia has the potential to be a leader in the sector. Australian super funds are investing heavily, with First State Super launching its own venture capital platform just weeks after putting $110 […]
FinTech changing the landscape
The emerging world of financial technology, or fintech, is having an impact on everything from the way new products are funded through to the culture and practices of major banks and financial institutions. According to Simon Cant, co-founder and co-managing director of venture capital player Reinventure Group, fintech is basically anything providing some version of a financial service using modern digital technology. “Fintech is affecting, in particular, the way consumers and SMEs are conducting their business,” he said. “Fintech is providing a better user experience, providing financing that is cheaper and is more convenient. “One of the earliest examples of new funding mechanisms is Kickstarter, where a technology platform underpins […]
