Cryptocurrency wallet temporarily restricts Australian dollar deposits
Popular cryptocurrency wallet CoinSpot has stopped accepting deposits in Australian dollars, blaming local banks for being “unwilling to work” together. In a blog post updated this morning, CoinSpot said the restriction on all forms of AUD deposits will remain in effect until at least the first week of the new year. “We assure you we are just as unhappy with the situation as you,” the platform writes on its blog. “But unfortunately Australian banks have been so far unwilling to work with the digital currency industry which leads to frequent account closures and strict limits on accounts whilst they remain operational, in effect debanking our industry.” The digital wallet service […]
FinTech body seeks changes to APRA’s proposal to reduce market barriers to challenger banks
The Australian Government’s proposal to make it easier for digital-first challenger banks to compete against industry incumbents is could be improved, according to the peak body for fintech startups. FinTech Australia has lodged a submission with the Australian Prudential Regulation Authority (APRA) in response to its discussion paper, entitled “A phased approach to authorising new entrants to the banking industry”. The discussion paper proposes that new banking entrants, known as Authorised Deposit-taking Institutions (ADIs) can apply for a “restricted ADI licence”. Under the restricted ADI licence, new banking entrants may take up to $2 million in deposits with an individual limit of $250,000 per depositor over a maximum period of two years, […]
Bank rules get tougher so technology’s importance grows
Borrowers who embrace apps and budgeting technology that tracks their spending are giving themselves a better chance of grabbing a good loan amid a crackdown by regulators. Stricter rules around loan serviceability means people able to prove what they spend are getting the upper hand. Financial regulator APRA last month called for more realistic living expense details on loan applications and increased vigilance by lenders. People’s Choice Credit Union spokesman Stuart Symons said reliable records were becoming increasingly important, and borrowers could help themselves “by being on the front foot”. “If you can’t show what you spend, a lender may look instead to an estimate that shows a higher level […]
Fingerprint payments to be ‘commonplace’ within a year: Visa
Shoppers will soon be able to take a scan of their fingerprint or face to authorise a credit card purchase, instead of entering a PIN, as part of a crackdown on payment fraud. With online card fraud rising quickly as stolen card details are used for website purchases, payments giant Visa is rolling out a suite of new changes aimed at stopping fraudsters. In a bid to counter fraud, it has issued new standards that will remove the need to enter a personal identification number (PIN) when making purchases in-person. It is also beefing up its systems for detecting fraudulent transactions made online. Instead of using a PIN for purchases […]
Australian RegTech partnerships crucial for banks moving forward, in light of the Banking Royal Commission
With the announcement of the Banking Royal Commission, Australia’s regulatory technology (RegTech) providers point to a lack of compliance and regulation among Australia’s Big 4 Banks. There continues to be a call for a parliamentary commission into unethical or unlawful conduct by the financial services industry in Australia. However, there is a growing and proactive movement for develop regulatory technology across the world, which will assist in detecting and preventing these issues, with Australia leading the way in this area. The Australian regulatory system is held in very high regard globally and much work is being done by both the Australian regulators and financial institutions to improve innovation and collaboration, […]
Commonwealth Bank to deliver ‘world-first’ issuance of a bond on the blockchain
The bank’s head of blockchain has revealed the Commonwealth Bank is currently implementing with a large world issuer in what will be a ‘world-first’ issuance of a bond on the blockchain that it hopes to bring to market in 2018. The Commonwealth Bank of Australia (CBA) is expecting to be the first to implement the issuance of a bond on the blockchain, and hopes to launch it into the market early next year with help from a “very large” world issuer. Although the details are limited, the bank’s head of blockchain Sophie Gilder told the GMIC Sydney conference on Tuesday that the launch will be the culmination of CBA investing […]
Banking gap widens as tech-savvy consumers look to new products
They’re called peer-to-peer lenders or fintech companies and they’re shaking up the world of consumer loans and bank deposits. Here’s why. The gap between what people pay for consumer loans and what they get from bank deposits is widening, prompting them to look to new financial technologies for better interest rates. Peer-to-peer lender RateSetter has examined big bank profit margins and found that while they are paying record low rates on deposits their lending rates for personal loans and credit cards continue to climb. “You can drive a bus through the spread between bank deposits and consumer lending rates,” said RateSetter CEO Dan Foggo. “Publicity stunts such as dropping fees […]
Australians are increasingly using their phone as a credit card: Deloitte
The pressure is on Australian banks to keep up with customer’s growing use of smartphone apps to pay for in-store and online purchases. A Deloitte survey has found the use of mobile payment solutions has grown 14 per cent over the past year, with over a quarter of respondents now using them. Mobile payment solutions include apps such as Apple Pay, Samsung Pay and Android Pay, which allow users to process payments for online or in-store purchases using the app, without having to punch in their credit card details every time. Most of these apps act as “mobile wallets”, allowing users to store their card details and authorise payments using […]
