Afterpay rival PayRight targets larger purchases with $30m funds raised
Australia’s booming, but controversial, buy now, pay later market has another major competitor after fintech firm PayRight raised a total of $30 million to expand its operations, which targets consumers making larger purchases than Afterpay allows. The company has largely flown under the radar in the sector, with $4.7 billion-valued ASX-listed Afterpay its most prominent rival. But PayRight is pitching itself as an option for retailers and service providers of bigger ticket items, rather than smaller impulse buys like clothing. Its funding has been compiled through a mix of debt and equity raisings over the last year led by corporate advisory firm Henslow and wealth manager Escala Partners, with the […]
Stone & Chalk supports Indigenous startup initiative
Fintech hub Stone & Chalk has partnered with not-for-profit Barayamal to provide Indigenous entrepreneurs with co-working spaces and access to investors, as part of its Indigenous Accelerator program in Victoria. The initiative, happening for first time in Victoria, will see five Indigenous startups receive a funding total of $50,000 in grants, also receiving support through free co-working space, mentoring and training from industry experts at the Victorian Innovation Hub, Goods Shed North. The program aims to have the startups grow their businesses over three months, with a final showcase at its demo pitch night. In the lead up to it, Barayamal is also running a two-day Pre-Accelerator in late March […]
Fintech investment doubled while Australian banks hammered
Investment in financial technology startups more than doubled last year while Australian banks came under intense public scrutiny for their treatment of customers. Globally, fintechs managed to attract US$26.7 billion investments in the 2017-18 year, which was 107 per cent more than the year before, according to Accenture analysis of CB Insights data. The increase could be directly attributed to fintech’s explosive growth in China, where the amount of money that went into the sector stunningly increased nine-fold. Its US$25.5 billion of capital raising in this nation alone almost matched the US$26.7 billion generated in the rest of the world. Australia saw similar growth with US$756.7 million total investment into […]
Fintech unveils mortgage under 3.5%
Fintech and online lender loans.com.au has unveiled its newest home-loan offering for owner-occupiers with a low interest rate of 3.48%. Dubbed the Smart Home Loan, the mortgage product is a principal-and-interest loan that has no ongoing fees and has a comparison rate of 3.5%. The product has a maximum loan amount of $1m and has several features such as redraw facilities and the ability to split and make additional repayments. Homebuyers can borrow as much as 80% of the value of their targeted property. Loans.com.au managing director Marie Mortimer said the new home-loan product aims to drive competition in the mortgage space and provide other options for borrowers who are […]
Power has shifted from banks to consumers: Bendigo Bank MD
A fundamental change in banking has occurred in a relatively short period of time: power has shifted from large financial institutions to consumers. In response, banks need to rethink how they serve their customers. That’s the view of Marnie Baker, managing director, Bendigo and Adelaide Bank. “The times are gone now where the power sits with the financial institution. The power is absolutely in consumers hands and they are dictating what they expect to see in an experience,” Baker told Which-50. Notably, the days of going to see a bank in their time and at their instruction have passed, Baker said, and today financial services need to be embedded into […]
Fintech reveals $250m funding boost
In a bid to compete head on with the traditional banks, a fintech lender has secured an additional $250m to fund Australia’s small businesses. In addition to the new funding, Moula has extended its loan terms from 24 to 36 months and doubled its maximum loan value from $250,000 to $500,000. Pricing starts from 15.95% APR and is said to be “unprecedented” in the online unsecured business lending space. CEO Aris Allegos said, “Until now, online business lenders have competed with banks on speed, ease of application and customer service. However, competition based on pricing has been largely absent. “Injecting a quarter-of-a billion dollars into Australia’s businesses and making our […]
Saxo launches digital access to Chinese bonds
Multi-asset trading and investment fintech specialist, Saxo Bank has announced the addition of Chinese bonds to its offering, a move which will be expected to further cement its position as a gateway to China for its international client base. In 2017, the firm offered an opportunity for qualified institutional clients in Australia to trade mainland China bonds which was enabled via its Hong Kong based bond connect mechanism allowing both overseas and mainland China investors to trade in each other’s bond markets. The launch of mainland China bonds would add to this access to China a-shares listed on the Shanghai and Shenzhen stock exchanges, the firm said. To read more, […]
ASX beaten to the blockchain punch by UK group Calastone
The ASX’s distributed ledger for clearing the equities market will no longer be the first time local fund managers rely on a blockchain to process their trades, after British-based Calastone revealed it will switch on its own distributed ledger technology (DLT) in May. Calastone, whose systems automate 80 per cent of Australian institutional fund flows, will beat the ASX by two years to powering on a system promising unquantified cost savings for global investors. ASX is due to belatedly switch on its blockchain, which will replace CHESS, in March or April 2021. Calastone’s software, which manages back-office processes, is used by 95 per cent of Australia’s managed fund platforms and […]
