Melbourne fintechs rival Sydney, but help needed
Melbourne peer-to-peer lender MoneyPlace has identified a rash of new fintechs that have started up in the city in the past five years, but argues they in danger of being lured offshore without government help. The first survey of Melbourne’s fintech scene by the lender’s founder Stuart Stoyan has uncovered more than 500 people being employed by 52 companies – three-quarters of which are less than two years old. KPMG released a study of fintechs in Australia in late 2014. It identified 950 start-up businesses in Sydney and about 350 in Melbourne. It has no exact figures for what proportion are fintechs, but estimated there are at least 150 based […]
Bruce Billson endorses disruptive online SME lenders
Fantastic article featuring many Australian FinTech companies and their ability to cause disruption to the big banks. Also great news to see the Australian government supporting this disruption. The Minister for Small Business Bruce Billson has backed a flurry of new online lenders targeting small and medium businesses to pressure the big banks to extend more credit to the often ignored sector. Mr Billson gave a ringing endorsement of the fintech start-ups’ ability to stir the forces of banking competition, after the big banks were stung by criticism at the National Reform Summit last Wednesday. Source: Bruce Billson endorses disruptive online SME lenders
Disrupters in battle for access to credit data
This is will be an ongoing battle for all players in the industry! Control of customer credit data is emerging as a flashpoint between banks and peer-to-peer lenders despite the introduction of the comprehensive credit reporting regime, which disrupters say is inadequate to allow competition to thrive in the digital world. Matt Symons, the chief executive of Australia’s largest P2P lender SocietyOne, has called for the government to monitor closely the quality of reporting by banks into the comprehensive credit reporting (CCR) regime. Source: Disrupters in battle for access to credit data
Peer-to-Peer
Peer-to-Peer Peer-to-Peer is perhaps the biggest driving force behind FinTech. By using technology to directly link peers you can increase efficiency and reduce the points of contact in any transaction. As each point of contact requires some form of payment for their facilitating role they simply add additional costs and complexity. Consider a loan from a bank as an example in simple terms: I deposit my money in the bank for which I expect to receive a return for letting them use it to make loans rather than holding it outside the banking environment. You borrow money from the bank so that you have access to funds that you would […]
P2P lender ThinCats Australia on prowl for strategic investors, potential IPO | afr.com
ThinCats Australia is looking to capitalise on investor interest in peer-to-peer lending, as it gears up for a potential initial public offering and holds talks with strategic investors.It’s understood ThinCats Australia, backed by UK-parent ThinCats, is in discussions with private equity firms, credit unions and accounting firms about a strategic investment. The company, which launched in Australia last year, is also considering a run at the ASX boards. Source: P2P lender ThinCats Australia on prowl for strategic investors, potential IPO | afr.com
Banks look vulnerable as lucrative loans market gets personal online
Mike Israel is at the forefront of a trend that some reckon could disrupt the very lucrative business of lending money to consumers and businesses. An information technology worker in his 50s, Israel is one of a growing number of people pocketing a piece of the major banks’ healthy profits, by lending their savings directly to borrowers and charging interest. He’s doing it via the internet, on platforms that allow investors to loan their cash to consumers for expenses like a new car, a holiday or a wedding. Borrowing for a wedding is a typical transaction. Known as peer-to-peer platforms, these websites don’t have to pay for sprawling branch networks […]
Fintech split on lower regulatory hurdles
Challengers to the banks and global payment giants disagree on whether there should be an easing of regulations for finance start-ups, a major recommendation of the Murray inquiry.Peer-to-peer lender RateSetter Australia argues current regulations are adequate and flexible enough. It said “graduated” regulation applied based on the company’s risk to the financial system suggested by the Murray financial system inquiry could threaten confidence in the emerging loan business models – particularly those lending to the public.”It is important that regulations for P2P lending are not weakened in any way and that consistency of regulation is critical for the P2P lending industry to prosper,” it said in its submission to the […]
