Fintech predicts consumer behaviour change from Royal Commission
Sydney fintech company CashDeck is predicting that the Royal Commission will create a permanent shift in consumer behaviour and have redirected their strategy and development resources to assist firms deal with the change. The company has developed Credit Ready, the financial equivalent of a Fitbit Fitness Tracker to help users stay on top of their finances. Owen Joyce, Chief Commercial Officer at CashDeck, suggests that the Royal Commission will result in a more financially literate consumer. “The sector isn’t waiting for the end of the commission, change is happening already. Look at how quickly the banks responded to the Living Expenses spotlight” he said, referring to the updating of policies […]
Citi partners with Apple Pay
Citi cardholders can now tap and pay with their Apple devices. Citi is the latest bank to jump on the Apple Pay bandwagon. From today, Citi credit card holders can use Apple Pay to make contactless payments with their smartphones or smartwatches. Citi is now one of the largest banks (as well as the likes of ANZ, American Express and HSBC) that has partnered with Apple Pay. Meanwhile, the rest of the Big Four (CommBank, NAB and Westpac) have yet to partner with Apple Pay as a result of disputes over access to the tech giant’s NFC in an attempt to run their own payment apps on iOS devices. Citi […]
P2P lender’s growth due to consumer ‘rebellion’
Peer-to-peer lender RateSetter has attributed its recent rapid growth to consumers actively rebelling against the big banks. The company has just passed the milestones of 10,000 investors and $250million in loans and says it is thanks to the Royal Commission’s scrutiny of the four major lenders. Research amongst RateSetter’s investor base has found that long-term customers of the big four, particularly amongst generation X, are diverting millions of dollars away from their savings accounts and term deposits into longer term P2P investing. The amount invested by these investors has increased by 14% over the last 12 months, with average investment now sitting at close to $40,000. CEO of RateSetter Australia, […]
Robo advisers march in tracks of royal commission scandals
The shenanigans revealed by the banking royal commission over the past week will inevitably draw attention to the emerging batch of start-ups offering digital financial advice. Often referred to as “robo advisers”, these technology companies are cutting investment fees through automation thereby removing the human foibles dramatically exposed by Commissioner Kenneth Hayne’s inquiry. The commission has shown human adviser education levels can be appallingly low, and paper-based processes have led to poor record keeping. Meanwhile, customers are often apathetic and disengaged, and complexity reigns. Processes being digitised include the creation of broking accounts, executing trades, rebalancing portfolios and generating statements of advice. This can all be presented to customers for […]
Change Financial looks to shake up the status quo for financial enterprise
US-based yet ASX-listed fintech company Change Financial (ASX: CCA) has announced three commercial deals to assist the growth of its enterprise division ahead of the full launch of its Software as a Service (SaaS) solution. The fintech newcomer has secured variously structured deals with Mastercard, Central Bank of Kansas City (CBKC) and Pulse, respectively. The deals aim to improve operating conditions primarily for its enterprise division, although upon further analysis, it seems Change will be able to derive synergies for all three of its business units, serving consumers, enterprises and blockchain users. Its consumer unit is focused on ChimpChange, an award-winning digital bank account and mobile app. ChimpChange makes free […]
Non-bank business lenders growing in popularity amongst SMEs
There is no doubt the big banks remain major players in the SME lending market however, there has been a steady rise in the number of non-bank lenders offering fast and flexible lending options in this space. They are able to move much faster than the traditional banker with their unique ‘fintech’ approach, giving small business owners across Australia alternative options when seeking business funding. Going hand-in-hand with this preference for more flexible finance solutions amongst SMEs is the demand for unsecured lending options. Business owners are demonstrating they understand the need to pay a small premium in return for fast, flexible finance options which do not require them to […]
Wealth management products make big leaps in digital sales readiness
Australians can now apply for 60% of all wealth management products offered by the country’s biggest banks from their mobile phones, according to a fintech which helps financial services companies acquire clients. Avoka measured digital sales readiness for the 50 largest banks across Australia, North America and Europe for products across three segments: personal banking, business banking and wealth management. Eleven of the 50 banks were Australian. Australia “leads them all” in digital readiness, the fintech said. “Banks have accepted that online account opening is a must have, not a ‘nice to have’. The focus now is on whether the largest banks can transform their entire customer engagement across all […]
Global 2018 digital banking sales report finds Australia again leads the way
Avoka, the global leader in digital customer acquisition for financial services, today released its third annual Digital Sales Report which found that Australian banks continue to excel compared with their peers in North America and Europe. The report analysed the digital account opening capabilities of the 50 largest banks in these regions (32 in 2017) and found that as banks capitalise on opportunities in the face of increasingly stiff competition, Australian banks once again lead in digital readiness. Avoka’s study focused on breadth of offer and ease of use, with the capability of 11 Australian banks assessed in the report. Commenting on the global findings, Avoka Chief Executive Phil Copeland […]
