UK’s open banking revolution has lessons for Australia
There’s a revolution going on in British banking. The UK’s Competition and Markets Authority (CMA) issued its final order on “open banking” in February. The new regime – on track to come into force next year– is set to have a profound impact on the sector in the coming decades and beyond. Banks have been told that information such as transaction and loan repayment data does not belong to them, but their customers. Those who want to use that data to access better financial products or services will be able to do so in a safe and secure manner. Delivery will be via application programming interfaces (APIs), software that allows […]
What is blockchain and how can it help business?
Blockchain sounds like a way to keep boats anchored, which isn’t a bad analogy, considering what the technology purports to do. While some IT experts herald it as a groundbreaking way of creating a distributed, unchangeable record of transactions, others question the nascent technology’s usefulness in the enterprise, which has traditionally relied on centrally-administered databases to secure digital records. Even so, companies are moving fast to try and figure out how they can use it to save time and money. And IT vendors are responding to customers calls for info, with some already looking to include it as part of their services. What is blockchain? First and foremost, Blockchain is […]
Digital wallet progress in Australia is slow but on the rise
The technology is ready. Banks know how to use it. Consumers want it now. So just when will we get the digital wallets we’ve been promised? What seems like a straightforward question with an equally straightforward solution has become mired in politics, as tech companies and banks disagree on the right way to deliver convenient mobile payment experiences and Australia’s competition watchdog and courts are forced to step in to mediate. But there have been small breakthroughs lately in what experts say is a sign that digital services will replace dog-eared wallets and overstuffed purses within years rather than decades. While Google Android phones were first to add secure Near […]
Banks may have to sell rivals’ products
Banks could be forced to sell financial products manufactured by competitors under new powers to be given to the corporate regulator. Australian Securities and Investments Commission chairman Greg Medcraft said the move could break down the economics of cross-selling and force banks to sell their wealth operations. Foreshadowing the end of the vertically-integrated banking model, Mr Medcraft said new laws will give ASIC a mandate to police competition while “product intervention” powers could be used to ensure banks only sell products that are in the best interests of their customers – which might not necessarily be their own. Mr Medcraft said the regulator could use its new powers to limit […]
Macquarie’s plan to beat the investment robots
Investing robots and index funds are poaching billions of dollars from human fund managers, but Macquarie Investment Management head of the Americas Shawn Lytle says the firm is repositioning to cope with the seismic shift into passive investing. Globally, droves of investors are yanking money from high-fee active managers and parking their funds in passive strategies such as exchange-traded funds that ride the ups and downs of select markets. Macquarie Investment Management, a global division which manages about $US257 billion of Macquarie Group’s $US362 billion in assets under management, is aiming to differentiate by offering more unique actively managed equities, bonds and alternative assets such as infrastructure. “We are at […]
ASIC signs fintech agreement with Indonesia
The Australian corporate regulator has signed a co-operation agreement with Indonesia’s financial services authority, Otoritas Jasa Keuangan (OJK), to “promote innovation in financial services in their respective markets”. The agreement, signed on Friday, provides a framework for the two regulators to share information on market trends and regulatory issues that develop from innovation within their respective markets. “Many fintechs are not constrained by national borders and it is fundamental that we leverage this to share views, exchange information and to discuss some of the challenges that this can create for fintech businesses and the community,” said ASIC commissioner John Price. The regulator said increased co-operation between the two regulators will […]
Why your financial adviser loves ETFs
The next time you chat to a financial adviser about portfolio construction strategies, depending on your investment focus of course, the conversation could very well turn to the use of exchange-traded funds. Advisers have become one of the core drivers behind Australia’s rapidly growing ETFs sector, which at the start of this month edged past $26.6 billion in total assets under management. So far this calendar year about $1.2bn in new investor funds have been channelled into ASX-listed ETFs. Research just released by research firm Investment Trends and ETFs issuer BetaShares shows seven out of 10 advisers are either currently recommending the use of ETFs to their clients or intend […]
IRESS readies industry for Fair and Sustainable Superannuation reforms
Financial technology provider IRESS says that just two months out from the introduction of new superannuation laws, administrators and financial advisers should now be in the final stages of preparation. The superannuation laws, known as the Fair & Sustainable Superannuation reforms, introduce new tax concessions, a $1.6 million transfer balance cap, the removal of the tax exemptions for Transition to Retirement pensions and a new system of ‘catch-up’ concessional contributions to assist those with broken work patterns. IRESS’ superannuation administration platform, Acurity, and its financial advice technology, XPLAN, have now provided a range of updates to clients in response to the complex changes, with new versions being provided under existing […]
