Fintech policy reform vital to fend off global tech giants
The federal government risks losing billions of dollars of taxation revenue unless it urgently tweaks laws to enable Australia to become the leading fintech market in the Asian region. That is the warning sent to senior government ministers on Wednesday from 32 financial technology start-ups, investors and incubators, who are calling for the innovation statement to make developing a thriving fintech industry a national priority. The submission highlights the urgency of reform by pointing to poor policy settings in Australia compared with the United Kingdom, United States and Singapore. These include difficulties for start-ups accessing credit data, restrictions on fintech investments receiving tax concessions extended to other areas of the […]
How fintech lender zipMoney boosted retail sales by 20 per cent
With $10 million worth of loans already allotted and having recently listed on the ASX, the innovative consumer finance company, zipMoney, appears to be taking the retail industry by storm. Distributing finance through more than 200 retailers and merchants, the fintech lender provides customers with access to loans of up to $2000 via a simple smart phone application within minutes. zipMoney CEO, Larry Diamond, said “there are two million small businesses around Australia and most are locked out of consumer purchase financing.” By taking the benefits of a credit facility without the burden, some of zipMoney’s users have reported increases in sales of up to 20 per cent. Source: How […]
Mutuals looking to fintech: KPMG
Australian mutuals are embracing innovation and fintech start-ups at an elevated pace, with 62 per cent indicating a willingness to invest in new technologies to improve their business, says KPMG. A recent KPMG survey, Mutuals Industry Review 2015: Time to take off, found that 62 per cent of Australia’s credit unions, building societies and mutual banks (or ‘mutuals’) are inclined to invest in new technologies. KPMG Australia national mutuals leader Peter Russell said: “Because the price of new technologies has come down dramatically due to the lower costs of starting new businesses, good ideas can be turned into business applications at a fraction of the cost of five years ago.” […]
OzForex underlying profit up 12 per cent
Remittance company OzForex has reported a rise of 12 per cent in half-year underlying profit to $12.3 million and a 30 per cent rise in revenue to $58 million. But its statutory earnings fell 6 per cent to $11.2 million due to one off costs. These included the cost of rebranding to a new name, OFX, restructuring its executive team and new pay schemes for employees. Importantly, OzForex’s active clients increased 16 per cent to 151,100, transactions numbers rose 17 per cent to 392,200, and average transaction value rose 15 per cent to $25,600. Source: OzForex underlying profit up 12 per cent
Cryptocurrencies: what to study until there’s a ‘bachelor of bitcoin’
Joel Emery’s passion is cryptocurrencies, IT and tax law. It’s dense stuff, but despite a recent senate inquiry, legal treatment of new financial technologies is in its infancy so Emery’s Bachelor of Laws honours thesis at ANU is in some ways ahead of the regulators. Bitcoin emerged in 2008 as the first decentralised cryptocurrency, a form of cash that uses encrypted records to validate transactions and generate more bitcoin and, although crypto-currencies get a bad rap at times, the industry is estimated to already be worth more than $14 billion. Every day, ordinary people walk out of the house without a cent, yet buy coffee, lunch and dinner using a […]
ASIC’s Greg Medcraft says ‘robo advice’ can reduce fees and conflicts
Australian Securities and Investments Commission chairman Greg Medcraft says computer-generated financial advice, or “robo advice” could slash investment costs and eliminate conflicts of interest in the maligned financial planning industry. ASIC has established a “robo-advice taskforce”, which is investigating the suitability of potential entrants, who use computer algorithms to match investors with suitable assets at a lower cost than human advisers. ASIC wants to know how they intend to comply with best interest duties, how algorithms are developed and tested, and how the people running the start-ups are trained and compensated. In a speech to a Finsia lunch in Sydney on Thursday, Mr Medcraft said ASIC believed digital financial advice […]
Qantas, GetCapital in deal to reward borrowers
Qantas has joined a growing number of global companies opening their arms to partnerships with new financial technology companies, linking up with small business online lender GetCapital. Unveiling the agreement with Qantas’s Aquire business rewards program, GetCapital chief Jamie Osborn said the deal was another example of the growing interest from big companies in “fintech” that is pushing the industry from “adolescence to adulthood”. Source: Qantas, GetCapital in deal to reward borrowers | The Australian
MoneyPlace second Aussie P2P lender for mums and dads
Melbourne start-up MoneyPlace became the second Australian peer-to-peer lender to open its virtual doors to mum and dad investors on Monday. The company, led by former NAB banker Stuart Stoyan and backed by Westpac’s former head of retail banking Rob Coombe, provides a platform for investors to make personal loans. Borrowers can get loans of between $5000 and $35,000 for terms of three to five years directly from individual lenders via MoneyPlace at rates starting at 8.99 per cent. It claims investors can earn returns from 7.8 per cent. After two years building MoneyPlace, including a 13-month approval process with the corporate regulator, it “matched” its first loan last week. […]
