P2P lifts in popularity amid miserable year for banks
With deposit rates at low levels and the local share market still choppy, peer-to-peer lending has become an interesting alternative for Australian investors over the last few years. But some cracks in the model appeared in the US recently when one of the biggest peer-to-peer platforms was caught up in a scandal that it is now scrambling to fix, offering a warning for the Australian industry about the importance of transparency. LendingClub had been seen as one of the leading lights of this space in the US, amid a range of players that use technology to match investors with borrowers, cutting out the overheads incurred by banks and aiming to […]
Kerry Agiasotis of WUBS: Win-win when rivals turn partners
One of the world’s largest non-bank providers of international business payment solutions says aspiring fintech companies should seek to pursue partnerships with their big company rivals rather than fighting them if they want their ideas to reach their full potential. The chief executive of Western Union Business Solutions, the dedicated business payments unit of the New York Stock Exchange-listed Western Union Company, said the firm was increasingly looking to partner with fintechs and other start-ups. WUBS is primary spot foreign currency trading provider to 20 per cent of the SME market in Australia and secondary provider to another 20 per cent, including the big four banks. It has more than […]
zipMoney – User Experience
We here at Australian FinTech are mad mountain bike riders. So when one of us – me – decided it was time to buy a new bike, this time a road bike, I thought that instead of just walking in and paying cash or dumping it yet again on the credit card, why not utilise an Australian FinTech company to assist with the purchase, interest-free. And here are the reasons: We here at Australian FinTech wanted to see how these FinTech companies work, how easy it is and how they perform; how much effort it is to apply and get interest-free credit; how ingenious the technology is; we wanted to […]
The fintechs targeting SMEs
Fintech companies have increasingly started targeting SMEs looking for ways to finance their businesses, but fintechs shouldn’t expect a revolution without a few setbacks. At least, that’s the view of some of the industry’s own experts and participants. With the market having had a few years to run its course, digital lenders, payment platforms and other financial technology firms have been given a warning: change, or face extinction. The changing face of fintech In lieu of more banking alternatives, fintech companies have increasingly started targeting more specific niches. It’s these businesses – not just those offering simple loans – that will end up surviving a glut of entrants, experts say. […]
Financial Leaders share their strategies to maintain their edge in the new era of Lending
Next Generation Lending 2016 16-18 August | Radisson Blu Hotel Sydney Australia is experiencing phenomenal growth in FinTech, with its alternative finance market growing by 320 per cent in 2015. With the industry’s wealth of talent and investment, it has successfully engaged the government and the regulator, ASIC to actively work together to promote innovation and digital disruption in financial services. So how is this evolving financial ‘revolution’ changing the traditional lending business model, who has the competitive edge and how is the industry benefitting as a whole? The 2nd annual Next Generation Lending conference, taking place in Sydney this August, will provide an in-depth look at how new […]
Fintech B2B small business lending marketplace Bigstone raises $3 million
Fintech start-up Bigstone has raised $3 million from a range of investors, including ASX-listed diversified investments and venture capital firm CVC, to grow its small business lending marketplace and offer an alternative to the big banks. The seed funding round is the first capital raised by the start-up, which connects small businesses wanting to borrow up to $250,000 with non-bank lenders. Other major investors in the round were the founders of Bangkok-based fund Lighthouse Venture Partners Paniti Junhasavasdikul and Narith Phadungchai, in addition to private investors. Bigstone co-founder and chief executive Boyd Pederson said the capital would be used to fuel expansion, grow its marketing team and to continue developing […]
Major mortgage group partners with US-based fintech player
One of Australia’s largest providers of mortgage broking services has formed a strategic alliance with an international fintech company. AFG today announced that it has partnered with New York-based Biz2Credit. The exclusive agreement will enable AFG brokers to deliver an innovative lending experience for small businesses in Australia. AFG will leverage Biz2Credit’s patented analytics and financial services technology to process small business loan requests more efficiently. “Loan applicants will enter information through a new online small business portal,” AFG said in a statement. “The technology will enable AFG brokers to provide small business borrowers with a broader range of options and deliver faster access to capital.” Using the new online […]
Fintech platform revenues set for massive rise: Juniper
Fintech platform revenues for unsecured consumer loans issued using machine learning technology are set to jump by a whopping 960% globally over the next six years, according to new research from Juniper. According to the latest report on the worldwide Fintech market from Juniper Research, revenues will rise to US$17 billion by 2021, with spending advancing rapidly due to the highly data-driven nature of the market, “meaning that AI integration is likely to spell substantial benefits”. Juniper says that until recently, machine learning was too expensive and computationally time-intensive to break into the mainstream, while access to extensive data sets for algorithm training were limited. Research author Steffen Sorrell says […]
