Hub24 to launch new core offering
Platform provider Hub24 will launch a new core offering for clients with lower average balances, offering a “limited investment menu” to users. In a statement, Hub24 announced it will be launching its core offering within its investor directed portfolio service (IDPS) and super products, saying the launch will “provide an entry point for clients with lower than average account balances”. “This new offer will provide access to a limited investment menu, typically a range of diversified managed portfolios from third-party providers, often at a lower administration fee than the more comprehensive platform,” the statement said. “There has been significant interest in this type of offer, which is expected to increase […]
Afterpay surges 20pc after earnings increase
Shares in Afterpay Touch gained as much as 20 per cent after the company said underlying sales has increased by almost 40 per cent to $736 million over the quarter. The buy now, pay later payments provider said group revenue for the 2018 financial year would be around $142 million while earnings before interest, tax depreciation and amortisation was forecast to be around $33 million to $34 million. Afterpay, which allows millennial consumers to pay for goods in instalments by charging merchants, said that $2.18 billion of underlying sales had been processed through its payment platform during the 2018 financial year. That is almost a threefold increase from the prior […]
Small and mighty: Meet the challenger banks nipping at the heels of the big four
A slew of challenger banks are poised to burst onto the Australian finance scene, in a bid to take on the big four, and change the way that Aussies think about banking. Typically offering cloud-based banking services without a bricks-and-mortar branch in sight, these so-called ‘neobanks’ say they will provide a more personal banking service, designed to be more in line with what modern bank customers want, whether that’s near real-time updates on spending and saving, or personalised lending for small business customers. Who are the challengers? They’re all still awaiting banking licences, but there are four major challenger banks coming out of Australia, at varying stages of readiness. They […]
Joust taps new Australian crowdfunding rules in bid to raise $2 million
Joust, an Adelaide based fintech that brings competitive tension to the home loan market by linking borrowers directly with over 20 lenders who compete against each other in real-time, has launched an equity crowdfunding campaign to raise $2 million. The Joust platform brings disruption to the $1.7 trillion home loan mortgage market where $2 billion in fees are paid to mortgage brokers annually. Described as a “consumer hero” fintech company – as Joust places the power back in consumers’ hands – Joust uses technology to provide transparency, competitive tension and superior customer outcomes to the home loan market. Key points: • Aiming to disrupt the mortgage broker channel under siege […]
Despite sensationalism and fear, blockchain is the real deal for businesses
It would seem that blockchain is gaining a bad reputation from many, thanks to the hyperbole being perpetuated in certain quarters. But while sensationalist and negative headlines confuse, a handful of banks are destined to have the last laugh as they move forward with adoption of the technology. The most common mistake being made, is that the terms “bitcoin”, “cryptocurrency” and “blockchain” are being used interchangeably. Cryptocurrency simply runs on blockchain – or distributed ledger technology – and that’s where the connection ends. One recent article was titled “Banks claim they’re building blockchains. They’re not” – the article was actually focused on bitcoin and cryptocurrency, meaning a more accurate title […]
Prodigal Prospa returns to investors for equity
Online small business lender Prospa has gone back to the drawing board following a dramatic false start to its mooted ASX listing. Following the 11th-hour shelving of its initial public offering last month, Street Talk understands the company is considering a range of options including a private raising The company’s co-founders and joint chief executives Beau Bertoli and Greg Moshal are working through how an additional pre-IPO raising would look and the quantum of funds required to fund Prospa’s near-term growth ambitions. The deal size is expected to be at least $40 million, correlating with the amount Prospa’s existing investors were originally looking to inject into the IPO. The private raise is one of several options being canvassed by Prospa. […]
Fintech’s double-edged sword
Ultra-low interest rates and fintech were two of the major threats to the stability of the financial system identified by the global regulator in its recent annual economic report. “Sustainable profitability is especially important at the current juncture: banks have been facing the dual challenge of persistently and unusually low interest rates eating away at their net interest margins, and growing competition from new technology-savvy players – big tech and fintech,” the Bank for Financial Settlements reported. “Once [fintechs] do have the scale to disrupt they will be regulated as if they were part of the established order.” According to Fabio Panetta, the deputy governor of the Bank of Italy, […]
Mastercard tries to make paying with virtual coins easier
Mastercard has landed a US patent for a payment system that would make it easier for people to quickly and securely settle transactions with cryptocurrencies. First reported by Coindesk, Mastercard said its proposed method would mean the payee assumed less risk in a cryptocurrency transaction, which could result in a higher acceptance of virtual coins by merchants. “It often takes a significant amount of time, around ten minutes, for a blockchain-based transaction to be processed, due to the computer processing time and resources required to verify and update the blockchain,” Mastercard said. “Conversely, traditional fiat payment transactions that are processed using payment networks often have processing times that are measured […]
