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 […]
Turnbull’s banking royal commission welcomed by fintech
Malcolm Turnbull has announced plans to establish a royal commission into the banking sector, and one fintech is hopeful it will bring more competition and trust to financial services in Australia. The announcement comes following a letter from ANZ, Commonwealth Bank, Westpac and NAB to the Treasurer asking for an inquiry to restore public faith. Alternative finance and peer-to-peer lender MoneyPlace’s CEO Stuart Stoyan told Canstar a banking royal commission “has been a long time coming”. “It’s important to re-establish trust with banks and financial services more generally,” he said. “I’m hopeful it will allow us to review policies that enable fintech to provide great products and services to all […]
Bendigo Bank customers can now shop with Apple Pay
After battling with Apple earlier this year, Bendigo Bank has now partnered with all three major digital wallets. Bendigo Bank is the latest Australian institution to join the Apple Pay ranks. From today, Bendigo Bank Mastercard customers can use their iPhone, Apple Watch or iPad to make contactless payments. This means lighter wallets, faster transactions and even more secure payments. To link your Bendigo Bank credit or debit card with Apple Pay, you just need to open the Wallet app and tap the plus symbol in the upper-right corner. Then follow the prompts to enter your card’s security code to add your credit or debit card from your iTunes account. […]
ANZ tech chief heralds its Apple advantage in bank tech revolution
Australia and New Zealand Banking Group’s top technology executive has claimed its decision to move ahead of its big four rivals with Apple Pay has led to big advantages in both customer and skilled staff acquisition as it seeks to position itself as a bank that operates like a tech giant. Speaking with The Australian Financial Review after addressing a Trans Tasman Business Circle lunch event in Sydney on Friday, ANZ’s group technology executive Gerard Florian said he was surprised that no other of the big four banks had sacrificed a slice of payment revenue to sign on with Apple Pay, and that ANZ was delighted it took the plunge […]
Fintech start-up Douugh scores partnership with US mutual bank Choice
Sydney-based fintech start-up Douugh has scored a partnership with US mutual bank Choice Financial, as it readies to launch its smart banking personal assistant, Sophie. As part of the open banking partnership, Douugh will launch an integrated bank account and debit card with the bank, giving it the ability to accept deposits. Choice Financial has also invested in Douugh, as part of a $2.5 million seed round. Founder and chief executive Andy Taylor, who was also a co-founder of successful peer-to-peer lending platform SocietyOne, told The Australian Financial Review he wanted to reduce society’s reliance on credit cards and help people save money. “I’ve always been quite passionate about the […]
Facebook’s Messenger payments looms over Australia’s big banks
Facebook’s challenge to Australia’s big banks is coming as early as next year, when the social media giant is expected to introduce peer-to-peer payments within its Messenger service, hot on the heels of local banks’ expected launch of their own P2P payments network. In July, The Australian Financial Review revealed Facebook had been awarded a patent to allow it to launch Messenger payments in Australia, which will allow users to pay family, friends and groups once they have linked up a bank-issued debit card to their social media account. More than 13 million people use Facebook Messenger in Australia each month, a figure that will have local banks – who […]
Wary banks to enter fintech waters
While larger financial institutions have traditionally stayed out of the fintech space, this could soon change, according to some of Australia’s leading experts. “To date I’ve actually taken the view that I don’t think the banks have really played much in this space because it’s disruptive and it’s easier for them to not necessarily add fuel to the fire or to accelerate that disruption,” said Anthony Millet, CEO of BRICKX, in a panel discussion at the Millennial 20/20 conference in Sydney (14 November). This is now changing with new legislation being introduced in Australia that makes it easier for start-ups to enter the market, he said. “I think we’re going […]
