ASIC lets the fintech start-ups out of the sandbox
The corporate regulator will today release its eagerly anticipated regulatory “sandbox” policy for fintech companies, enabling start-ups to test their products and services for a limited period without having to hold an Australian financial services license. ASIC released a consultation paper in June and has now completed its regulatory guidance, with commissioner John Price set to cut the ribbon. As with all these processes, the fintech industry hasn’t got everything it wanted. However, the final version from an industry perspective is said to be an improvement on the draft, putting in place a sound platform for future improvements. For a start, the AFS licensing exemption is believed to have been […]
Turnbull says fintech is switched on
Prime Minister Malcolm Turnbull has sought to reassure leaders of the wealth-management industry that the government is committed to reducing red tape and fostering innovation. This comes as the government looks to the booming financial services sector to pick up the slack from declining mining industry revenues and boost economic growth. The latest set of national accounts, released last week, showed that over the three months to September 30, gross domestic product (GDP) recorded the slowest quarter of growth since the global financial crisis nearly a decade ago. A 0.5 per cent fall in GDP over the September quarter, which pushed the annual growth rate down to just 1.8 per […]
5 enterprise-related things you can do with blockchain technology today
Diamonds. Bitcoin. Pork. If you think you’ve spotted the odd one out, think again: All three are things you can track using blockchain technologies today. Blockchains are distributed, tamper-proof, public ledgers of transactions, brought to public attention by the cryptocurrency bitcoin, which is based on what is still the most widespread blockchain. But blockchains are being used for a whole lot more than making pseudonymous payments outside the traditional banking system. Because blockchains are distributed, an industry or a marketplace can use them without the risk of a single point of failure. And because they can’t be modified, there is no question of whether the record keeper can be trusted. […]
EML boss sees cashless society as ‘tap and pay’ technology takes off
AUSTRALIA is likely to be a cashless society within a decade as “tap-and-pay” technology becomes commonplace, according to Brisbane-based EML Payments. The payment services provider is riding a wave of global demand for debit, prepaid and loyalty cards, providing transactions worth $2.5 billion for major Australian and global brands including the Good Guys, Toyota, Ladbrokes, Shell and Sprint. “Australia has one of the highest adoptions of tap- and-pay in the world, accounting for 75 per cent of transactions,” EML Payments chief executive Tom Cregan said. “In the US, it is only about 10 per cent.” Mr Cregan said the move to a cashless society in Australia had been pushed by […]
A great fintech border invasion
If ever there were a banking niche ripe for disruption, it would be cross-border payments. It almost defies comprehension that Amazon can deliver physical goods faster than a bank can make a credit entry. The reason, of course, is that remittances still meander through the 600 year-old correspondent banking system, which requires six players to link up to achieve the final outcome — the payer, the payer’s bank, the payer’s bank’s correspondent, the beneficiary’s bank’s correspondent, the beneficiary’s bank and the beneficiary. The system is clunky, opaque and extremely costly for users. Fintech was always going to find a better solution, and the machinery is now in place for far-reaching […]
Australia needs to foster FinTech with level playing field
The recent Presidential election in the US and the Brexit vote in the UK clearly show that the public in liberal democracies like Australia are tired of failure by governments to ensure social justice is being served on all levels. Political and corporate leaders appear to the public to act with impunity and social policies are not addressing the increasing inequality of wealth. These leaders seem to be out of touch with their constituents, illustrated by the surprise results in US and UK. Leaders in Australia should be warned — they ignore, at their peril, social justice issues such as the behaviour of the ‘Big Four’ banks, who operate in […]
Exchange trade funds to over take listed investment companies by 2018
Exchange traded funds (ETFs) are poised to overtake listed investment companies as the most popular pooled investment option on the ASX within two years if current trends persist. ASX data for November shows that the value of ETFs rose by 17 per cent to $24.5 billion, while the value of listed investment companies rose just 2.3 per cent to $30.5 billion. Experts point to the increasing sophistication of investors, regulatory change, growing numbers of ETF strategies available at low cost and the rise of the self-managed super fund as among the key forces driving ETF fund flows. Listed investment companies, which have a long history of performing for retail funds, […]
5 Tips For Better Understanding Peer-to-Peer Property Lending in Australia
As a bumper year for property investment comes to a close, emerging trends towards non-bank finance in the property space gather steam heading into the new year. Developers need more funds to deliver their projects as the major banks pull back on finance. As more investors get comfortable with researching higher yielding investment opportunities, we take a look at the key things you need to know about ‘Peer-to-Peer’ (P2P) debt-style lending in the Australian property market. Don’t Chase High Returns If a debt offering is returning 18-30% and is a mezzanine type, deal chances are it is extremely risky. A developer is only paying this pain money as a […]
