Apple offers banks an olive branch
It’s a rare thing to see three of Australia’s big banks, so dominant in their home market, arguing for special dispensation from commercial laws to boost their bargaining position. But when it comes to dealing with Apple, the world’s largest company, Australia’s banks are mere minnows. But with the combination of smartphone proliferation and tap-and-go technology set to revolutionise payments by allowing customers to use their phones like plastic cards, the banks see this case as a cudgel. They’re desperate to retain customer relationships at the point of sale and as commerce moves to mobiles. This fight is an early battle for control of the digital wallet. Apple, banks, retailers […]
ACCC blocks banks’ bid to collectively bargain over Apple Pay
The competition watchdog has denied a bid by Commonwealth Bank of Australia, Westpac Banking Corp, National Australia Bank and Bendigo and Adelaide Bank to collectively bargain with tech giant Apple over access to its Apple Pay payments platform. The Australian Competition and Consumer Commission has issued a draft determination “proposing, on balance, to deny” an application for authorisation to allow the banks to form a cartel to negotiate with Apple. A final decision will be made in March. The ACCC said the banks’ proposals could distort competition between mobile operating systems, reduce competitive tension between banks individually negotiating with Apple, and reduce competition between the banks in the supply of […]
Australians are starting to think robot financial advisers might be a good idea
The use of automated investment services, or robo-advice, is still small in Australia but is growing fast. The latest research by analysts Investment Trends shows 27% of online investors have heard of robo-advice, up from 19% just six months ago. Robo-advice, the field of online investment and savings platforms where face-to-face is replaced with automated guidance and execution, is growing via a series of fintech startups in Australia including Stockspot. “Many investors are taking notice of robo-advice, and have an interest in learning more about this potential digital disruptor in the financial services industry,” says Investment Trends research director Recep Peker. “Robo-advice will take centre stage as more solutions become […]
Hashching creates virtual ID system for first fully-digital loan approvals
Hashching, a website for home buyers to choose mortgage brokers, has built the first fully-digital process for home loan verification in Australia, which would allow banks to comply with strict regulations for identifying clients without having to send them to a branch. This weekend, Hashching, which has processed $2.6 billion of mortgages since launching 15 months ago, will begin the pilot for a biometric identity verification service allowing brokers on its platform to satisfy strict “know your client” (KYC) banking regulations by asking a customer on a video call to hold up a proof of identity to the camera on their computer or mobile phone. Across the banking industry, KYC […]
Crowdfunding opened to companies up to $25m
Unlisted public companies with less than $25 million in assets and turnover will soon be able to raise capital via crowd-sourced equity funding, thanks to a new bill introduced by the Coalition on Thursday. The long-awaited bill comes almost a year after the government first tried to introduce the legislation, only for it to be knocked back by the Senate. The new bill has a few amendments from the original legislation, including expanding the size of the unlisted public companies that can access this type of funding from only those with less than $5 million in assets, to $25 million. If the legislation is passed, these small businesses will be […]
Fintech finds itself disrupted as forces of consolidation strike
The consultancy industry’s urge to claim brand ownership of fintech in all its different guises is almost as powerful as the rise of fintech itself. McKinsey & Co is the latest example, stating with its usual gravity that fintech is itself maturing and entering a period of rapid change; in other words, the disrupter is now being disrupted. It’s easy to be cynical, but seriously, what would you expect? That said, the global management consultancy has presented some useful data on a number of trends, including valuations, to support its thesis. Examining 44 fintech companies valued at more than $US1 billion, McKinsey found that the spikes in valuation that occurred […]
Fintech start-up Airwallex chipping away at the major players
Technology companies do not have to reinvent the industry they address – sometimes they can take a small slice of an enormous industry by being faster and cheaper. The Melbourne start-up, Airwallex, is a case in point. Offering flat-fee pricing for foreign exchange transactions will not instantly challenge the big players but given that forex sees a global daily turnover of about $US1.4 trillion ($1.9 trillion), the year-old business does not need massive market penetration to be highly profitable. “There’s 230 million foreign exchange transactions per month,” says chief executive and co-founder of the company, Jack Zhang. A former IT engineer for the big banks, Zhang says Airwallex uses some […]
Deloitte Technology Fast 50 Australia
Congratulations to those Australian FinTech companies that appeared on the Deloitte Technology Fast 50 Australia winners list and taking out the Top 3 places! #1 – Cashrewards #2 – MoneyMe Financial Group #3 – OpenMarkets #6 – Prospa #12 – DigitalX #24 – Mobile Embrace #42 – Class Read all about it here.
