APRA prepares to approve three new banks
There’s a prospect of there will be three new banks in the Australian market by Christmas, operating under unrestricted, full banking licences. That these could be held by three start-ups less than a year old – Volt Bank, 86400 and Judo Capital – shows just how fast the regulatory environment is changing under policy leadership of new Prime Minister Scott Morrison. As Treasurer, he championed the need for more competition to pressure incumbent banks to become more customer-centric. Before Morrison’s 2017 budget paved the way for new entrants to enter the deposit market by streamlining application procedures, APRA had granted only one new banking licence to a local player in […]
Could Bitcoin replace Credit Cards?
Growing competition in the retail sector – and the possibility that the digital currency could help merchants lower transaction fees that cut into profit margins — could induce them to replace credit cards with Bitcoin. “From a merchant perspective, Bitcoin has the advantage of not having large fees from credit card companies that cut into profits,” writes Ian DeMartino, in The Bitcoin Guidebook: How To Obtain, Invest, And Spend The World’s First Decentralized Cryptocurrency. “Credit card companies typically charge between three to four percent for each transaction, a fee the merchants normally take on themselves. For merchants with small profit margins, that fee could be up half or more of […]
‘Overwhelming’ response to World Bank’s blockchain bond: CBA
The world’s first public bond created and managed using only blockchain had support from seven investors, Commonwealth Bank of Australia the sole lead manager of the deal said on Friday, helping raise A$110 million ($80.48 million) for the World Bank. Commonwealth Bank (CBA) executive general manager James Wall said that the deal, designed to test how the technology might improve decades-old bond sales practices, had exceeded expectations and interest had been “overwhelming.” The American fund Northern Trust, three Australian state governments, local pension fund First State Super, and CBA were the investors in the deal, which is being viewed as an initial step in moving bond sales away from manual […]
Banks and fintechs lock horns on consumer data
If you’re interested in the design of policy to put data into the hands of customers, there’s three weeks to provide Treasury with a response to its draft bill that will introduce a “consumer data right” into the Australian economy. Banking will be the first sector to which the new right will apply – and fintech innovation is set to proliferate as a result. It will then extend to energy and telecommunications, meaning the law will stir competitive forces across some of the most important industries in the country. The Treasury Laws Amendment (Consumer Data Right) Bill 2018, released for comment last week, is being closely scrutinised by banks, fintechs […]
FinTech Aus calls on Parliament to pass consumer-friendly laws
Voluntary promises by the Australian Banking Association on behalf of the big four banks can’t be relied on, and Parliament should pass consumer-friendly legislation, like Comprehensive Credit Reporting, without delay, according to FinTech Australia. FinTech Australia voiced concerns that there may have already been attempts by the banks to delay or roll back on the promise, and suggested it could have been a tactic to prevent compulsory regime. CEO of FinTech Australia, Brad Kitschke, said trusting the banks to share data on a voluntary basis would end in poor consumer outcomes, and delaying legislation would only be in the interests of the banks. “Allowing the big banks to control or […]
Lessons from Australian businesses on cracking the US market
Colin Weir, CEO and founder of Moroku is planning to spend two weeks in mid-September on the west coast of America meeting at least two banks each day. Moroku is an Australian fintech which sells white label mobile app technology for banks, which allows banks to build their own apps using the mobile application development platform or they can use the pre-built apps from Moroku, such as Chore Scale – a mobile banking app for kids, launched in 2017. “The problem we are trying to solve is how do we make banking fun so banks can differentiate with their offering and customers can pay attention and get skilled at managing […]
Banks will prioritise tech, data and new partnerships this year
Currently, 58% of banking leaders are not actively partnering with fintechs, regtechs or other startups. Over the coming 12 months, 37% of Australian banking leaders are looking to invest in business transformation and technology and 33% are planning to invest in digital offerings and data. One in five banking leaders say they’ll be investing in new alliance partnerships over the coming year, to gain more market share and compete globally. These findings come from a new Banking Industry Report released today by technology provider TAS, which spoke to senior Australian banking executives to analyse their thoughts and priorities for the year ahead. Unsurprisingly, one in three banking leaders are concerned […]
Fintechs fill the void left by commission
Fintechs are filling the gap in SME lending as the big four banks concentrate on the fallout from the royal commission, according to one online lender. The fintech commercial lending space opened up in around 2013 and since then has reported an annual growth rate of around 79%. According to chief commercial officer at Moula, Matt Leeburn, part of this growth has been down to fintechs focusing on lending to SMEs, which make up more than 97% of all Australian businesses. He said that while the space is still “a while off” being a significant threat to the banks, there is a huge opportunity to help the “underserved” SME market. […]
