Fintech vs Banking: Which sector controls the future of money?
There could be trouble ahead at the top of the financial market arena. In the red corner is Banking — one of the world’s most pre-eminent industries represented by a handful of stalwart banks, who’ve been around for centuries and considered the bedrock of a modern financially-savvy society. In the blue corner is Technology — in the form of a cloud of hovering tech firms, buzzing around consumers and serving up the most connectible and value-added premium products ever seen. Most innovations that have improved financial services have been down to “financial technology” or “fintech” for short. Separating the two is a wall of compliance and a patchwork of regulatory […]
Fintech – The evolution of modern financial technology in the 21st Century
Financial procedures have evolved drastically over the last 100 years. We have seen a huge change in how many aspects of finance are processed such as payments, investment, data storage and types of currency. A term that has sprung up in the last couple of decades and gained prominence is ‘Fintech’ – this articles details exactly what Fintech is, and why it is essential for the modern world. What is Fintech ? Fintech = financial technology This is the basic meaning. Fintech is much more than that however – it is any new type of innovative technology that competes with or precedes traditional financial methods; particularly the delivery of financial […]
Chatbots just the beginning for AI in banking
Over the two years since professional Go player Lee Sedol was defeated by AlphaGo, a computer program created by Google’s DeepMind, artificial intelligence (AI) has continued its rapid march. Technology systems using machine learning are controlling distribution centres, monitoring energy systems and diagnosing serious medical conditions. Voice-activated digital assistants being rolled out by tech giants are powered by natural language processing, an area of AI. The banking sector is also accelerating its adoption of AI. Over the past year, many experiments have moved into production. The technology is being used to deliver personalised banking experiences to customers and helping bank staff make better decisions. An initial AI deployment in banking […]
Micro-investing apps creating electronic piggybanks for the tap-and-go age
Small change used to go into people’s piggybanks, building cents into dollars. But in the tap-and-go age, micro-investing may be the answer. “They’ve been able to match smart technology within regulatory innovation to allow people to invest literally small change,” financial planner Catherine Robson said. With no paper bankbook and no plastic card, apps controlled entirely on smartphones like Acorns and First Step are lowering the bar for investing in the stock market. While First Step has recently launched, Acorns has $160 million under investment for 140,000 clients. With an average holding of just over $1,100, its client base is much younger than the major banks. “Millennials are definitely more […]
NAB warns on Facebook, Apple banking threat
Technology giants with investment budgets that dwarf those of Australia’s banks are expanding into financial services, and likely to represent a growing competitive threat to the industry, National Australia Bank warns. NAB’s chief operating officer, Antony Cahill, on Thursday highlighted the future wave of competition banks may face from the technology sector, as he appeared before the Productivity Commission’s inquiry into competition in finance. Mr Cahill said that on top of the “truly intense” competition banks currently faced, lenders were “acutely aware” of the growth and emergence of new rivals. These potential rivals included financial technology or “fintech” firms, and the likes of Apple and Facebook. He cited KPMG figures […]
NAB, CBA and Westpac continue to stall on Apple Pay deal
At least a quarter of Australian consumers are being prevented from making mobile payments on their smartphones thanks to little more than the self-serving stubbornness of Australia’s three biggest banks. If you’re an iPhone user who banks with the Commonwealth Bank of Australia, Westpac or NAB, then there’s no way around it: your so-called ‘digital wallet’ is completely useless. Given 45 per cent of us use iPhones, and 60 per cent of us bank with one of those three institutions, that means at least 27 per cent of us are shut out from using this cutting edge technology entirely. But if you’re not one of these 27 per cent of […]
Samsung Pay now available for CommBank customers
From today Commonwealth Bank Mastercard customers will have access to Samsung Pay. The contactless payment platform enables CBA customers to make payments via compatible Samsung phones and wearables. CommBank already offers Android Pay but not Apple Pay. Research released this week suggested smartphones users’ loyalty to their devices was influencing their choice of banks. In a company statement, Samsung said the new partnership with CBA demonstrates their commitment “to making mobile wallets an everyday reality for millions of Australians.” To use the app CBA customers must load their Mastercard debit and credit card information to the Samsung Pay digital wallet. However the app creates a “tokenised card number” for users […]
Bank-in-an-app startup Pelikin has launched a crowfunding equity raise
Pelikin, a banking alternative designed for digital natives, today launched a $400,000 equity raise on crowdfunding platform Birchal. The fintech startup is founded by 28-year-old Sam Brown, who wants to disrupt traditional retail banking with a more efficient way to manage money in Australia and while travelling abroad. Pelikin users will be able to control and spend in multiple currencies at once, all from the one app and with one debit card, as well as transfer money to other Pelikin users instantly and free. “We’re not ex bankers who’ve had an epiphany that the retail banking world needs to change; we’re frustrated, everyday banking customers who are dedicated to making […]
