Western Union bids up to $888m for OzForex
Global payments giant Western Union has offered to buy online foreign exchange company OzForex Group for as much as $3.70 a share, implying a value of about $888 million, as revealed by Street Talk on Wednesday. The New York Stock Exchange-listed company is taking its counsel from Gresham Partners. The offer is up to $1.10 above its Wednesday closing share price of $2.60 and its average over the past six months of $2.47. OzForex’s shares have climbed 28 per cent since touching a 52-week low of $2.03 on July 16. The proposed takeover price compares with the $480 million the company was valued two years ago when its shares first […]
Why fintech is high on the radar for this London Stock Exchange-listed company
Financial technology, or fintech, is finally getting the recognition it deserves as funding pours in and investors begin to warm up to its risky nature. Solving the technological shortcomings of banking institutions and easing payment processes while increasing consumer protection, companies under the segment have been quite instrumental in improving the quality of financial services for both customers and entrepreneurs. Following the success of Lending Club, WePay and Kabbage, dozens of fintech start-ups have entered the fray, and it didn’t take venture capitalists long to flirt with the idea of betting on them. According to the Economic Times, the industry is now worth US$4.7 trillion (AU$6.6 trillion), and have raked […]
The rise of robo advisers
The notion of robots delivering financial advice is one of the hottest topics in financial planning circles. Even Australian Securities and Investments Commission chairman Greg Medcraft has weighed in, saying “robo advice” could slash investment costs and eliminate conflicts of interest. Judging by the number of new offerings coming on the market, this will be a growth sector, but how easily will people accept advice delivered by rules-based algorithms? The most common answer is that “millenials” will lead the way on “robo-advice” take-up, as they trust technology in a way their forbears do not. The cost of delivering advice is generally estimated at one-fifth to one-tenth of fee-based financial advice, […]
ASIC calls for ‘two-tier’ regulation of fintech sector
ASIC chairman Greg Medcraft has advocated a two-tier regulatory system that encourages innovation via ‘light-touch’ oversight of fintech start-ups. Speaking at a Finsia ‘Regulators Panel’ event in Sydney, Mr Medcraft pointed out that innovative business models often do not “fit” into existing regulatory frameworks. “It’s really important we rethink the way we regulate [financial services companies] in a digital economy,” he said. Mr Medcraft said Australia should adopt a more flexible or ‘agile’ approach to regulation, as is seen in other parts of the world. Source: ASIC calls for ‘two-tier’ regulation of fintech sector – Mortgage Business
Macquarie targets robo-advice at mass market
Macquarie Group is targeting retail investors and self-managed super funds with a new robo-advice program that will provide detailed recommendations matched to customers’ investment priorities. The bank will next month launch an online tool allowing customers to buy investment advice covering asset classes including shares, exchange traded funds, and managed funds from around the world. Macquarie Wealth Management chief investment officer John O’Connell said the advice would draw on a database of 30,000 investment options globally. OwnersAdvisory is aimed at selling lower-cost investment advice. After gauging customers’ risk profile through an online questionnaire, Mr O’Connell said the program would produce “a written outline of exactly what we would do if […]
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.” […]
