Shadow banks swoop as five lenders quit sub-prime home loans
Digital home-loan lender Tic:Toc is launching into the sub-prime mortgage market targeting small business owners as five other lenders quit the sector claiming “industry changes”. Tic:Toc’s move follows stakes being taken in the online lender by Genworth Mortgage Insurance Australia and La Trobe Financial, which is part of the US investment giant Blackstone Group. Other major lenders, including Commonwealth Bank of Australia and Bank of Queensland, pulled out of the sector to be replaced by regulation-lite shadow banks, including Pepper Money and Resimac. Adelaide Bank, Perth-based Bluebay Home Loans and Resolve Finance’s mortgage division are also quitting the sub-prime sector blaming changing marketing and funding conditions. The move comes amid […]
How the Banking Royal Commission will affect the auto-financing industry
The recent release of the banking royal commission’s interim report has highlighted that responsible lending practices need to be extended to the auto-finance industry. The implications of this for entities making car loans is significant as 90% of all car sales are currently arranged through finance, many of which have fallen short of responsible lending provisions. According to the report it is not enough just use ‘likelihood of default’ as a measure of loan suitability. Prior to making an assessment on whether a loan is suitable, the licensee must now take a number of steps to ensure responsible lending provisions are met. These necessary steps include: “making reasonable inquiries about […]
Big lending fall shows businesses need to investigate crowdfunding options
A significant drop in lending activity during December has illustrated the need for business owners to investigate other ways raise growth funds, including crowdfunding, according to a major Australian crowdfunding platform. According to Australian Bureau of Statistics (ABS) figures which were released today, the value of lending commitments to businesses fell by 9.7 per cent in seasonally adjusted terms in the month of December 2018. This included commercial finance commitments dropping by 9.8 per cent and lease finance falling by 5.7 per cent. The fall in business lending outstripped the reduction in household lending commitments, which went down 4.4 per cent. In the year to December 2018, business lending commitments […]
UBank launches AI mortgage application assistant
A new artificial intelligence-powered mortgage application assistant will soon be able to answer customer questions in natural language, UBank has announced. UBank has revealed that its new AI-powered digital home loan application assistant, called Mia (short for My Interactive Agent), will start answering more than 300 common customer questions in real time from late February. The NAB subsidiary, which worked with FaceMe to develop Mia, said customers will be able to converse in natural language with the AI assistant via their desktop or mobile devices at any time about their mortgage applications. For example, customers could ask about what the variable rate of a loan is or what classifies as […]
Neo-lender Wisr sees increase in banking defectors amid Banking Royal Commission
Neo-lender Wisr (ASX:WZR) has launched a bold new campaign targeting disillusioned customers of big banks, following the Hayne Royal Commission handing down its findings into consumer lending practices. The ‘Australia’s Getting Wisr’ campaign taps into the prevailing sense of unfairness that Australians feel towards the big banks and how customers can make smarter choices when seeking personal loans. The campaign in the coming months will showcase the company’s personal loan, financial wellness programs and new smartphone application. It is the first brand campaign undertaken by Wisr since launching the brand in March 2018 and will appear nationally on television and online from this week. Earlier this week the Hayne Royal […]
Know whether your bank is giving you a good home loan deal with uno’s loanScore
Australian fintech uno Home Loans is empowering customers to take back control with the launch of loanScore.
Crowd Property Capital’s Non Bank Development Funding Guide 2019 – rates and jargon explained
There are now numerous non-bank funding options available to developers and no shortage of lenders ready to deploy capital into quality projects with sounds fundamentals. The sector has matured over the last 2-3 years but there are many pitfalls (and a lot of jargon which we explain in the guide) to navigate. This guide looks to inform and assist developers considering non bank options for their projects. To download the guide, please click here.
Sydney fintech firm MoneyMe to invest $10m in Newcastle operations
SYDNEY-based fin-tech firm MoneyMe plans to invest up to $10 million in Newcastle and create about 100 jobs over the next three years. Co-founder Clayton Howes says the move to set up a Hunter office by MoneyMe, which specialises in offering fast credit up to $15,000 via mobile, has been a year in the making. The company will soon temporarily move 10 staff in the DASH co-working space in Charlestown and has earmarked permanent offices in the East End. Mr Howes said the company was impressed by Newcastle’s smart city credentials and innovation culture and saw its proximity to Sydney as an advantage. “It’s a bit like how San Francisco […]
