Greg Medcraft urges innovation on blockchain technology
Australian Securities & Investments Commission chairman Greg Medcraft has called on market regulators around the world to “start thinking about” the challenges of blockchain, the technology behind cyber-currency bitcoin. Mr Medcraft, who is also chairman of the International Organisation of Securities Commissioners, urged regulators to consider the potential challenges of blockchain at a recent meeting in Madrid. In an interview with The Australian, Mr Medcraft said the broader commercial use of the blockchain technology was “on the horizon” with industry claims that it could “save billions of dollars if they can make it work”. He said it also had the potential to “improve liquidity” in some financial instruments, “which is […]
Target market for robo-advisers to grow with net usage
Robo-advice does not work well in complex situations but suits people in their 30s and 40s who are already using the internet to manage their finances and are starting to save serious money toward retirement. Robos work very well where the investor’s situation is not complex and a person neatly fits into one of several predetermined categories. For example, the small but relatively focused subset of people in their 30s and 40s who are starting to save serious money toward retirement are perfect for robos. They may have already looked at negative gearing and margin lending to grow their savings but feel disinclined to take on the added risk in […]
Signal Ventures hunts Australian early stage tech startups with $10m fund
Early stage Australian tech startups will soon have a fresh option for seeking funding with the formation of a new $10 million venture capital fund backed by US and Australian investors. The fund is to be run by Signal Ventures, which has been founded by Melbourne-based startup industry backer Atlanta Daniel and experienced US-based tech investor Niel Robertson. It is in the midst of raising a $10 million warchest, and expects to have closed its funding round by the end of April. The fund will target so-called seed investing rounds, or the first external funding round for up and coming startups, and is likely to inject around $150,000 to $250,000 […]
SocietyOne sees potential to work with banks
The new chief executive of SocietyOne, Jason Yetton, says there is potential for the peer-to-peer lender to work with a big bank such as Westpac, his former employer, as it tries to distribute loans to a wider range of customers. SocietyOne is one of the emerging group of “marketplace lenders”, which are eyeing off the profits that banks make from unsecured lending, by using online platforms to allow investors to lend directly to borrowers. P2P lenders typically promote themselves as a lower-cost option for borrowers, prompting banks to consider their defences against the new online threat. Mr Yetton, who previously ran Westpac’s retail and business bank, will also use his […]
Robo-advice not ’biased’ during volatility
Human advice may be outperformed by robo-advice during times of market volatility, considering automated tools are not subject to behavioural bias, says BetaSmartz. BetaSmartz chief executive John James said eliminating behavioural bias means that robo-advisers will accurately manage risk, and “will always have an advantage over humans”. Mr James argued that robos are not subject to a domestic or “home bias” to the extent that human advisers are. “This [domestic] bias can limit diversification and, in a volatile environment, completely exposing an investor to just one market may not be the optimal way to meet their goal,” he said. He explained that robo-advisers can easily navigate volatility because they have […]
DomaCom to crowdfund gay retirement village
Property investor DomaCom is using its crowdfunding platform to raise capital to fund a $25 million gay and lesbian retirement village, proposed near Ballan in central Victoria. In what may well be a world first, the crowdfunding model has been harnessed to drive the staged development of a 120-dwelling estate on 30-acre block, 80 kilometres north-east of Melbourne. “It will be the world’s first retirement village through crowdfunding,” said DomaCom chief executive Arthur Naoumidis. “Let alone being a gay, lesbian, bi and transgender, intersex retirement village: that’s definitely a world first. It’s great. It shows the versatility of our platform.” Already DomaCom is nearing the close of the first $1.5 […]
Jason Yetton the new CEO at P2P lender SocietyOne
Former Westpac Banking Group senior executive Jason Yetton will join peer-to-peer lender SocietyOne as its new CEO on Monday with a brief from the fintech’s high-powered owners to ramp up lending growth on the platform. SocietyOne co-founder and current CEO Matt Symons will stay on at the company as chief strategy and innovation officer. The appointment will be announced by SocietyOne on Friday morning. The platform has matched more than $78 million in loans since it was established in August 2012. Source: Jason Yetton the new CEO at P2P lender SocietyOne
Global SME lender picks fight with P2P lenders
Global small business lender Capify claims peer-to-peer lenders will suffer more than most during a downturn because they lend to risky borrowers for too long, but P2P lenders say the evidence doesn’t stack up. New York-based Capify lends to small business in the US, Canada, Britain and Australia. It introduced so-called merchant cash advances to Australia in 2008 under the name AusVance, which involves a business giving up future credit card takings in return for credit. Founder David Goldin claims most marketplace or P2P lenders that have sprung up during a period of rock bottom interest rates and low funding costs will not survive a downturn, whereas Capify made it […]
