Ombudsman calls for greater clarity on fintech loan terms
Speaking to Mortgage Business, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), Kate Carnell, stated her concern that fintechs, including Prospa, are making their interest rates “really hard to understand”. The small business lender, which postponed its public listing this week, reportedly has an average annual interest rate north of 40 per cent. However, while Ms Carnell did not suggest the interest rate was inappropriate, she did question the transparency around the actual rate itself. “If somebody wants to pay a 40 per cent [annual percentage rate], that’s absolutely fine,” Ms Carnell told Mortgage Business. “For particular sorts of loans that could have high levels of risk, that’s an […]
AMP’s stumble has smaller players smelling blood
Amid the storm unleashed by the commission, these tailwinds have become something more like a gale. The market has arguably moved a long way ahead of the eventual facts on the ground, perhaps too far. The royal commission is still in fact-finding mode. Reports won’t be finalised until early 2019. Even then, what will and won’t be taken up in law is another issue entirely. It could well be two years before the dust settles. Yet the theme looks well entrenched in the share prices. Hub24, Netwealth and Praemium all trade at 12-month forward price-to-earnings multiples of around 66, on Bloomberg numbers. That looks difficult to swallow. The Bell Potter […]
Prospa founders admit float lost ‘vital momentum’
The co-founders of small business lender Prospa maintain the company can return to the public markets for a future float, after a last-minute regulatory query this week created “confusion” that sapped the listing of vital “momentum.” Prospa was meant to be one of most-watched floats of 2018, but these plans were thrown into disarray this week as scrutiny from regulators apparently caught the company, and its investment bankers, off-guard. After Thursday night’s decision to postpone the float, on Friday, co-founders Greg Moshal and Beau Bortoli said Prospa was taking the opportunity to “regroup” and one day return to the public markets. Prospa had been due to list around lunchtime on […]
2018 Budgeting & Savings Apps worth checking out
Looking to take control of your finances, but don’t know where to start? Your smartphone could possibly help you, thanks to these new budgeting and savings apps that have grabbed the public’s attention. According to a recent study by the Australian Bureau of Statistics, Australia’s average household savings ratio (the ratio of income saved to household net disposable income) is currently at a record low of 4%. Furthermore, a study by UBank found that in 2017, two million Australians had less than $1,000 set aside in their savings accounts. There’s no doubt that saving money, tracking expenses and sticking to an allocated budget can be tough, not to mention that […]
Fintech startup HashChing has launched an equity crowdfunding campaign
Mortgage marketplace startup HashChing, a fintech startup disrupting the monopoly of the big banks, has launched an equity crowdfunding campaign. It’s currently live on the Equitise platform, which has one of the seven crowdfunding licences issued for the first time this year. HashChing, which is seeking between $1 million and $5 million, has so far raised $286,500, at a minimum $250 investment, with another eight days to go. “A slight difference in interest rates can cost a homeowner thousands of dollar each year,” says Mandeep Sodhi, founder and CEO. “This is why one out of two Australians like to deal with a mortgage broker instead of going direct to the […]
CoinJar opens the trading floor with Australia’s fastest digital currency exchange
Australian cryptocurrency company CoinJar, has launched its new high-speed digital currency trading platform, CoinJar Exchange. The exchange is the fastest in Australia, and will allow cryptocurrency traders to trade Bitcoin and Australian Dollars against popular cryptocurrencies Ethereum, Litecoin and Ripple. CoinJar Exchange boasts a superior trading engine which processes and fills orders faster than any of its competitors in Australia. This reduces latency and provides sophisticated and retail traders with a faster experience when trading using the CoinJar Exchange. Integration with buy and sell orders from other exchanges will provide greater market liquidity, allowing CoinJar traders to enter and exit with ease. The exchange also has an open trading application […]
Credit law delay angers FinTechs
The FinTech industry body has criticised the government and consumer groups over delays to new comprehensive credit reporting laws, with the legislation now remaining in the lower house for three months. It comes as a senate committee gave a tick of approval to the bill, despite a number of concerns surrounding its potential impact on vulnerable and disadvantaged Australians. Treasurer Scott Morrison announced in November last year that the government would be legislating a mandatory comprehensive credit reporting regime, requiring all banks to provide credit information and active consumer credit accounts to eligible reporting bodies. Under the scheme, banks would have to provide “positive” credit data, including how many accounts […]
The best, and worst, performing Australian ETFs for 2018
Exchange-traded funds (ETF) under management in Australia grew 33% over the past year to $36.2 billion, according to the annual ETF Report by robo-advice fintech Stockspot. The best performer was UBS IQ MSCI Asia APEX 50 Ethical ETF, which generated a return of 30.1%. The biggest loser was BetaShares Australian Dividend Harvester Fund which lost 16.2%. This fund invests in large ASX shares that are about to pay dividends while also selling futures contracts as a form of hedging to reduce risk. Chris Brycki, CEO and founder of Stockspot, says this year’s findings signal the ongoing disruption to the asset management industry by ETFs and indexing. “The investment industry is […]
