Superannuation ripe for blockchain
Australia’s $2.7 trillion superannuation system has a lot to gain from adopting distributed ledger technologies (DLT), but the industry will want more clarity around blockchain applications before it jumps in. Bravura Solutions global head of wealth management product Michelle Lusty says blockchain and DLT will find success in wealth management once they begin to offer a compelling business case while improving inefficient links in the value chain. “In core superannuation admin the margins are not excessive, so you have to look across the value chain for opportunity within the margins. “Where DLT could potentially make a positive difference is in superannuation investments. Within super, there’s a fund structure that invests […]
“One of the strongest blockchain communities in Australia”: NEM Foundation opens blockchain hub in Melbourne
NEM Foundation is opening a new blockchain hub in Melbourne, to help startups understand how the technology could help their business, and to engage and educate the general public. The foundation, designed to promote the NEM blockchain platform and its cryptocurrency XEM, already has a hub in Brisbane, as well as in Westport, New Zealand, both of which opened within the past year. Speaking to StartupSmart, NEM Australia lead Jian Chan says Melbourne has established itself as “one of the strongest blockchain communities in Australia”. Jason Lee, NEM’s expansion director for Australia and New Zealand adds the hub is focused on encouraging uptake and development of blockchain technology. There is […]
Afterpay, Zip await ASIC critique of buy now pay later
An in-depth investigation into the often controversial buy now pay later industry by the corporate regulator that will assess whether new laws are needed to protect consumers will be made public in December, as new criticism is levelled at the model of local giant Afterpay Touch Group. Sources told AFR Weekend the Australian Securities and investments Commission was putting the finishing touches on its deep dive into the sector in readiness for a late-2018 release, after it came up against some delays. The regulatory review kicked off earlier this year, with the aim of determining whether the industry needed further regulation, whether customers were at risk of harm or were […]
Open banking could make expense checks easier for brokers
Brokers will be one of the many beneficiaries of the comprehensive credit reporting and open banking regimes, according to mortgage industry executives. Stephen Moore, CEO of Choice, believes brokers will significantly benefit from the mandatory comprehensive credit reporting (CCR) regime — which is yet to be legislated despite the government imposing a deadline on the major banks to submit 50 per cent of their CCR data by 30 September 2018 — and open banking more broadly. “We have a fundamental belief that the future of broking for many brokers is a combination of digital interaction with customers married with high-quality face-to-face advice,” Mr Moore told The Adviser. “The reason we say that is because […]
AI platform claims it can advise at 1/20th of cost
A US-based digital platform wanting to set up a presence in Australia says it is able to provide financial advice through artificial intelligence for 5 per cent of the cost of a human adviser. New York-based fintech firm Pefin said its platform uses AI technology to provide holistic, affordable and fiduciary financial planning and advice, encompassing every financial decision a consumer would need to take, all for 5 per cent of the cost of a human adviser. It said it is currently setting up an Australian subsidiary to customise the product for the Australian market. “Pefin will license its AI technology and create a uniquely customised Australian platform that provides […]
Can flawed credit rating systems be rebuilt on the blockchain?
Credit scores control people’s lives, and something that powerful needs to be decentralised. On 2 October 2018, Mastercard filed a patent for connecting an individual’s cryptocurrency and fiat accounts. It’s described as a “behavioural profiling method and system to authenticate a user.” This verification might be an important security element in the process where credit cards or accounts will be automatically frozen when a strange transaction is detected. Strange, in this case, is defined as a deviation from the user’s typical behaviour according to their established profile, such as a transaction taking place outside their usual country of residence. “Variations between the behavioural characteristics of the user interactions observed during […]
Personal loans: Young borrowers desert banks for better deals
Borrowers are turning away from traditional banks when applying for personal loans, flocking to digital, mobile-centric platforms and peer-to-peer lenders. A recent CommSec Economic Insights report showed loans by non-bank financial institutions were up 10.3 per cent for the year to August. This was an indication that banks were engaging in “more considered” lending and borrowers had other options, according to CommSec chief economist Craig James. “Banks are facing greater competition from non-banks,” Mr James said. “At the same time bank deposits are only lifting at a 2.5 per cent annual rate, putting greater reliance on external funding. It is clearly a competitive and challenging environment for financial institutions.” Peer-to-peer […]
Programmable money will be the trigger for governments to adopt blockchain
The original blockchain use case – bitcoin – involved making payments while circumventing government and banks. So there’s some irony that its latest local use case involves a big government agency and the country’s largest financial institution adapting the original blockchain to control how government payments are spent. But blockchain innovation is full of surprises. Like the internet itself, what was briefly a rebellious technology is fast becoming mainstream. The Australian Financial Review revealed today that Commonwealth Bank and the CSIRO’s Data61 unit have teamed up on a pilot that could see targeted payments made by the National Disability and Insurance Scheme (NDIS). The blockchain will be a private version […]
