A first for Australian fintech: SocietyOne becomes first Aussie P2P to hit $500M in lending
SocietyOne has today become Australia’s first and only marketplace lender to reach $500 million in loan originations across its personal loan, agri lending and marketplace business, and is now setting its sights on reaching $1 billion by the end of calendar year 2019. The milestone follows a record August and the recent appointment of ex-Westpac and Citibank exec, Mark Jones, to the top job of CEO. “We’re delighted to have reached this significant milestone as we deliver an even better deal for our borrowers and investor funders,” said Mr. Jones. “We’ve been growing steadily over the past 12 months while we continued to transform our business and build new capabilities […]
ASIC warns all fintech business lenders over contracts
The corporate regulator wants all online business lenders to remove unfair terms from their contracts just like Prospa has done, indicating start-ups that want to compete against banks will be held to similar regulatory standards as community expectations lift following the royal commission. In a letter sent last week to Brad Kitschke, CEO of industry lobby group FinTech Australia, the Australian Securities and Investments Commission declared “action [is] required”. ASIC said it “will consider regulatory action where appropriate” if fintechs don’t comply with the 2016 laws that prevent lenders using excessive contractual power over business borrowers. Banks have already been forced by ASIC to make the changes, although Hayne royal […]
OnDeck small business online lending tops US$10 Billion
OnDeck (NYSE: ONDK), has announced it has achieved a milestone in the Financial Technology (FinTech) industry, becoming the first non-bank online lender to surpass US$10 billion in total loans originated to small businesses. OnDeck, with operations in the United States, Canada and Australia, is the world’s largest non-bank online lender to small business by total loan volume. Founded in 2015, OnDeck Australia is a subsidiary of OnDeck (ONDK). The achievement by OnDeck, a pioneer of the FinTech lending industry, is the latest indication that small businesses increasingly prefer to seek financing online. According to the Small Business Credit Survey from the Federal Reserve, small business owners are turning to online […]
Guide to borrowing from fintech lenders released
The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) and theBankDoctor.org released a guide to help small to medium enterprise (SME) owners better understand the ‘ins and outs’ of borrowing from fintech lenders. “This is another step closer to transparency and disclosure for the fintech industry; an alternative finance solution for SMEs,” Ombudsman Kate Carnell said. “Borrowing from fintech lenders is a joint project between ASBFEO and independent SME finance expert, Neil Slonim from theBankDoctor.org. “It provides answers to the questions asked by most potential borrowers: What is a fintech lender and how is it different to a bank? What products do they offer? How much can I borrow and […]
Lendi named as one of LinkedIn’s top startups
Leading online home loan platform, Lendi, has been recognised in the 2018 LinkedIn Top Startups list, honouring the 25 most sought-after startups in Australia. The LinkedIn Top Startups list celebrates the companies and people making an impact in the professional world. The list is derived from a blended score looking at factors including interest in the company, engagement with employees, job interest and retention, and is informed by the billions of actions taken by more than 575 million professionals on LinkedIn. “At Lendi, we put people at the heart of everything we do. To be featured on Australia’s first LinkedIn Top Startups list is a significant milestone for us. It […]
Raising the bar for SME lending
For those who work in the finance industry, there appears to be no shortage of lenders and loans in the marketplace. However, for those running Australia’s 2.1 million small and medium-sized enterprises, it can be difficult to see the wood for the trees. With the intention of addressing this, in July six fintechs signed the Code of Lending Practice, a document designed to bring transparency and clarity to the online balance sheet lending space. An initiative of the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) and FinTech Australia, key elements include the introduction of a pricing comparison tool allowing customers to compare the cost of unsecured loans from the signatories; […]
Prospa becomes first online small business lender to complete review of loan terms with ASIC
Prospa is the first online small business lender to have undertaken a full review of its loan terms after consultation with ASIC. Prospa has agreed to certain recommendations from ASIC in relation to removing or amending some of its contract terms. Some of these terms have, historically, not been relied upon, and other terms were amended to clarify or reflect existing policies. Prospa notes that the amendments agreed with ASIC do not have any material impact on the company financially or operationally. Prospa’s COO Ben Lamb said: “We’re always looking for ways to improve finance outcomes for small business owners. As the first non-bank lender to complete its review, we […]
Xero State of Lending Report: Funding gap is stifling small business growth in Australia
Research unveiled today by Xero suggests Australia’s small businesses could borrow as much as $80 billion over the next 12 months, if they could get the funding. Instead, small businesses are struggling to access the capital they require, in large part due to the complexity of the loan process. This is creating a funding gap and holding back significant jobs and growth opportunities for the Australian economy. According to the Xero State of Lending Report, one in five small business owners (22%) say access to capital is the greatest pain point or perceived threat to their long-term growth aspirations, and a quarter of small business are not very confident in […]
