digi.cash launches digital Australian dollar
digi.cash, a spin-off company of the Capital Markets CRC, today officially launched the digital Australian dollar. The electronic version of the currency is digitally ‘minted’ as electronically signed coins and banknotes. These can be held on smartphones, computers or storage media. Just like cash, online users can transfer coins and notes between each other via free, instant transactions. The encryption technology used means that the electronic banknotes can securely circulate over public communication networks, without the risk of theft or counterfeiting. Digi.cash founder Andreas Furche, along with Chairman David Skellern and Director Peter Clare, said the launch represented a fulcrum moment for Australian FinTech. “Unlike other digital money products, digi.cash […]
How incubators are empowering fintech startups
Of all the technological innovations taking the world by storm, fintech has certainly been one of the most prolific. Hundreds of new startups are entering the space, offering products including everything from lending to more specialised fare. Older, more experienced bankers and financial experts leaving their industries have created many of these startups. But just as many have started through young up-and-comers – and they’ve needed a little helping hand along the way. This is one of the reasons incubators and accelerators have been such a key part of the fintech industry. All over the world, fintech businesses have been flocking to incubators in droves. In the United States, the […]
CBA trials blockchain for trade finance
Commonwealth Bank of Australia has successfully used “smart contracts” to execute invoice financing documents and letters of credit with 14 other global banks financing international trade, in another indication that blockchain technology is set to be deployed in the coming years by global banks to reduce costs. R3 CEV, a consortium of 51 global banks including CBA, said its Corda platform is “significantly faster, more reliable and cost-effective” than traditional trade finance processes that are largely paper-based, risky and open to fraud. Blockchain refers to networks of computers holding synchronised copies of information. Corda has been developed by R3 to allow banks to only share what’s needed for other banks […]
Kerry Agiasotis of WUBS: Win-win when rivals turn partners
One of the world’s largest non-bank providers of international business payment solutions says aspiring fintech companies should seek to pursue partnerships with their big company rivals rather than fighting them if they want their ideas to reach their full potential. The chief executive of Western Union Business Solutions, the dedicated business payments unit of the New York Stock Exchange-listed Western Union Company, said the firm was increasingly looking to partner with fintechs and other start-ups. WUBS is primary spot foreign currency trading provider to 20 per cent of the SME market in Australia and secondary provider to another 20 per cent, including the big four banks. It has more than […]
The fintechs targeting SMEs
Fintech companies have increasingly started targeting SMEs looking for ways to finance their businesses, but fintechs shouldn’t expect a revolution without a few setbacks. At least, that’s the view of some of the industry’s own experts and participants. With the market having had a few years to run its course, digital lenders, payment platforms and other financial technology firms have been given a warning: change, or face extinction. The changing face of fintech In lieu of more banking alternatives, fintech companies have increasingly started targeting more specific niches. It’s these businesses – not just those offering simple loans – that will end up surviving a glut of entrants, experts say. […]
Major mortgage group partners with US-based fintech player
One of Australia’s largest providers of mortgage broking services has formed a strategic alliance with an international fintech company. AFG today announced that it has partnered with New York-based Biz2Credit. The exclusive agreement will enable AFG brokers to deliver an innovative lending experience for small businesses in Australia. AFG will leverage Biz2Credit’s patented analytics and financial services technology to process small business loan requests more efficiently. “Loan applicants will enter information through a new online small business portal,” AFG said in a statement. “The technology will enable AFG brokers to provide small business borrowers with a broader range of options and deliver faster access to capital.” Using the new online […]
Why trade finance is a good use case for blockchain
Trade finance is shaping up as one of the most promising early use cases for blockchain technology. The arrival of blockchain is prompting banks to search for analogue processes across the global economy which could be digitised to reduce financing risk. As a cumbersome process using multiple paper-based contracts with settlement typically taking weeks, the $US4 trillion ($5.3 trillion) trade-financing industry is set to be revolutionised by distributed ledger technology in the coming years. Many of the world’s largest banks and various start-ups have been pumping funds into blockchain research and development. They are now branching out of their laboratories to explain the opportunity to customers. In the trade finance […]
