‘Robo-advice’ reference turning SMSF investors away
Some SMSF trustees are ignoring automated advice services on the false assumption that none of these services involve any human overlay, says an automated advice provider. Speaking to SMSF Adviser, Six Park chief executive Pat Garrett said SMSF trustees often hear the word robo-advice and are off put because they think everything with the service is automated. “There are parts of the service that should be automated such as the admin, because that’s how the costs come down. A lot of the processes associated with opening an account, assessing the client’s risk profile and their needs can be automated,” said Mr Garrett. On the investment front, however, across some of […]
Australia’s Alternative Finance Future goes from strength to strength
Australia is emerging as a regional leader in the $300bn global Alt-Fi market. Alternative finance (or Alt-Fi) is a catch-all phrase used to describe emerging, digital financial services models such as peer-to-peer and marketplace lending (business and consumer finance), crowdfunding and invoice lending. However, for Australia to stay ahead greater consumer and business awareness is needed as well as policy and regulatory settings that continue to evolve with the development of this nascent sector. Globally this market is expanding quickly, up 100 percent year-on-year, with China the dominant world market (in terms of absolute volume), accounting for 85 percent of the total market. A staggering US$243.28 billion was raised through […]
Australia cites Blockchain in ‘Digital Economy’ strategy launch
Australia’s government is plotting an ambitious new Digital Economy initiative, citing the country’s previous work with blockchain and its future potential in a new public consultation call. The scope of the project is outlined in a new paper published this week by the The Department of Industry, Innovation and Science, which also includes a series of questions aimed to spur public debate around digitized businesses and services. Though none of the questions explicitly mention blockchain, the document highlights the technology in several areas, and signals that the government in Australia sees a prominent role for blockchain in the future. As the paper explains in one passage: “The next phase of […]
No reason why Australia should not be a global leader in the fintech sector
by Scott Morrison MP, Federal Treasurer Digital disruption in financial services is changing the world. The opportunities that spring from this disruption, in a region with an Asian middle class increasingly empowered by choice, are there for our taking. Recently I travelled to Beijing to lead our representation at the Strategic Economic Dialogue with the Chinese government, and meet with major Chinese firms who are investing in Australia. Among the encouraging signs of China’s pursuit of sustainable economic growth, the prudency in which it is addressing debt and its continued openness to trade and investment, is the pace of digital change within their economy. While Silicon Valley, London or Singapore […]
RBA, ACCC want more competition in banking
The Reserve Bank of Australia and the competition regulator have endorsed the government’s budget policies to boost banking competition including the regime that will force incumbent banks to provide data to customers to allow them to shop around for better deals. In a submission to the Productivity Commission, the Reserve Bank said competition in banking is being restricted by bundling of products, particularly with cross-subsidisation “obscuring the pricing of individual products”, which makes customers less willing to switch banks. The central bank said it backed the push towards “open banking”, “comprehensive credit reporting” and recent moves to increase transparency around banks setting interest rates via oversight by the ACCC. The […]
One-month P2P investments popular with Millennials and Gen X
Data has revealed Millennial and Gen X peer-to-peer lending investors utilise the one-month market more than any other. Analysis of the $150 million invested in peer-to-peer lending (P2P) platform RateSetter since its 2014 launch shows over 70% of Millennial and Gen X investors on the platform have invested in the one-month market. For the one-year market, this figure was only 40% for Millennial investors and 42% for Gen X investors. CEO of RateSetter Daniel Foggo said the one-month market provides a “stable, attractive return of around 4% p.a.” with ready access to money. “Far from wasting money on avocado toast, these young investors are seizing the opportunity to make their […]
Older Aussies ‘lack’ confidence with financial technology
It’s not that older Australians lack the capacity to engage with modern banking technology, but that they lack the confidence, a major Australian bank has said. New data from the Commonwealth Bank shows that older Aussies are “increasingly” using technology to stay on top of their finances. However, while the bank noted that this group has “strong ATM usage” and has seen a “big uplift in online banking”, they nevertheless lack confidence. The head of retail sales strategy and projects at CBA, Anna Mankiewicz said: “What we find in our everyday interactions with older customers is that, when it comes to keeping up with the fast evolution of technology, it […]
Australian Fintech finalists at the Optus My Business Awards
Congratulations to all the Australian Fintech companies and leaders who have been nominated as finalists in this year’s Optus My Business Awards: Business Leader of the Year Andrew Murray, Curve Securities Young Business Leader of the Year Larry Diamond, zipMoney Mandeep Sodhi, HashChing Finance Business of the Year zipMoney Fintech Business of the Year Curve Securities ezyCollect Maestrano MAUS Business Systems MoneyMe Financial Group NowInfinity Practice Ignition SelfWealth Sniip zipMoney Information and Communications Technology (ICT) Business of the Year Maestrano Innovator of the Year Practice Ignition Pocketbook
