Consumers and businesses win in private company equity crowdfunding bill changes
FinTech Australia has welcomed significant changes to draft legislation allowing private companies to crowdfund equity, which will ensure investors are protected while at the same time delivering reduced costs and red tape for companies. The draft crowdfunding legislation was introduced into the Australian Parliament today. The legislation is expected to provide a new fund-raising tool accessible by hundreds of thousands of Australian businesses, who will be able to crowdsource up to $5 million a year from retail investors, capped at $10,000 per retail investor, in return for equity in their company. “We’re pleased to see the recent rapid progress in the development of this draft legislation, and in particular the […]
You can now pay for your Jetstar flights with Afterpay
Afterpay for flights just took off. Afterpay has announced a partnership with budget airline Jetstar, allowing customers to purchase their flights now and pay for them in four interest-free instalments later. For those of you not yet in the know, Afterpay works in a similar way to lay-by, only you get to take home your purchases before you finish paying for them. It has partnered with hundreds of online retailers so far, but this Jetstar venture marks its inaugural entrance into the travel industry. Available from today, as part of its pilot programme Afterpay can only be used on domestic flights, though there are plans to roll it out on […]
Xero launches biggest number of products in its history
Cloud accounting software platform Xero has launched the biggest collection of products in the company’s 11-year history, including a partnership that promises to offer automated marketing for accounting firms, an educational learning platform for high schools, universities and businesses and a complete re-thinking of Xero Expenses. The features have consumed much of the company’s growing research and development spend, which is 41 per cent of revenue. The suite of products was announced by Xero chief executive and co-founder Rod Drury at this year’s Xerocon in Melbourne, which attracted more than 3300 people from 19 countries. Mr Drury told The Australian Financial Review announcements at next year’s Xerocon would be even […]
Sydney charges ahead as a global FinTech leader, Melbourne not far behind
FinTech Australia, a national FinTech startup community, has welcomed the strong performance by Sydney and Melbourne in the most recent Global Financial Centres Index. The Index ranks London in the top spot with a rating of 780, followed by New York, Hong Kong, and Singapore respectively. The Index is published every six months and measures the attractiveness of the 108 global financial centres. The report analyses research from a number of major international organisations, including the United Nations and World Bank. Australia did particularly well with Sydney holding its position at number eight in the world, and Melbourne experiencing a significant increase from number 21 to number 13. FinTech Australia […]
Expensify finishes first year in Australia with 220% customer growth
Just one year after officially setting up shop in Australia, Expensify announced today that its APAC-based clients have doubled over the past year, contributing significantly to the company’s growth. New Expensify customers in the region include La Trobe University, Xero, Oaks Hotels and Resorts, and Atlassian, as well as many small businesses. This major milestone comes just after Expensify’s recent announcement that the expense reporting app now serves more than five million users worldwide, having doubled its global customer base since early 2017. Beyond impressive customer growth, Expensify’s expansion in the region has included new partnerships, integrations, and product improvements, such as: Welcoming BDO Australia, Growthwise, and Adaptable into […]
Four areas Australia should focus on to lead in the coming fintech boom
If Australia wants to lead the next wave of fintech innovation, it needs the next generation of start-ups to be successful. Although the federal government and the corporate sector are on board, it will take more than general support for Australia’s fintech scene to mature competitively. Sydney start-up hub Stone and Chalk’s CEO Alex Scandurra believes the Australian fintech industry is already maturing past apps and gadgets, but the “valley of death” – the time before a start-up is cashflow positive – still looms large in an industry riddled with failed ventures. This is one reason the focus for Stone and Chalk has grown into more of a “fintech ecosystem”, […]
Criticism of Acorns’ fee structure is missing the point: a Millennial responds to ‘rip-off’ claims
Financial planners tell the rest of the population how to invest based on logic and structure. But most people look beyond just numbers when making decisions. Recently Gary Stone, chief executive of Share Wealth Systems and author of Blueprint to Wealth, wrote about Millennials being ripped off by investment apps such as Acorns. He pulled out his calculator and came up with a number of 6.2 per cent in fees that people with small balances were paying Acorns. He claimed this was outrageously high compared with other managed investments. But he has missed the point. An investment app such as Acorns is not a managed fund. It’s an education and […]
ASIC poised to release ICO guidelines: What this means for startups
Startups enticed by the growing popularity of initial coin offerings (ICO) as a fundraising method may soon be subject to more regulation, as the corporate watchdog prepares step up its oversight of the blockchain-based funding practice to weed out any scams. However, one local startup founder who’s in the midst of his own ICO says more regulation is needed to ensure startups don’t expose themselves to unnecessary risk. The Australian Securities and Investments Commission is poised to release a guiding statement on ICOs, reports Innovation Aus, which will likely see Australia follow the lead of the US by including the fundraising method within its existing regulations governing initial public offerings […]
