Westpac trials Prospa tie-up
It is great to see that the big banks in Australia are starting to support our FinTech companies. Lets hope that the this announcement encourages some of the other banks to get in and trial a partnership with an up and coming technology. Westpac has begun quietly trialling a partnership with online small business lender Prospa, signalling a growing willingness by the big four banks to embrace working with the rapidly emerging “fintech” industry. Source: Westpac trials Prospa tie-up
OzForex co-founder’s big winner from Western Union bid
OzForex co-founder Matthew Gilmour expects other bidders to emerge for the company after global payments giant Western Union made a stunning $888 million takeover offer bid for the company. As revealed by Street Talk Online on Wednesday, Western Union has offered to buy the online foreign exchange company for as much as $3.70 a share, which 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. Mr Gilmour stands to reap more than $34 million if Western Union buys it at the top of its offer range of $3.70 a share, which values the company at $888 million.OzForex […]
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 […]
