Wealth scandals open door for new entrants
A global data provider believes neobanks and robo-advisers stand a good chance of gaining traction in an industry where incumbents are plagued with scandals. Following the news that troubled wealth giant IOOF could face several class action lawsuits, GlobalData believes the damage to public trust in the financial services industry will have significant long-term implications for how Australians invest. Andrew Haslip, head of banking content for Asia Pacific at GlobalData, said superannuation has a prized place in the heart of many Aussies and allegations of misuse of client money in this area are particularly damaging on top of a string of other banking and wealth-related scandals. It has given the […]
Lender seeks to debunk non-bank ‘myths’
The chief lending officer of a credit provider has sought to refute the “myths” associated with non-bank lending amid concerns raised by financial regulators. Speaking to Mortgage Business’ sister publication, The Adviser for its livestream webcast, chief lending officer of La Trobe Financial Cory Bannister sought to “debunk” what he has perceived as “myths” regarding the rise of non-bank lending. Over the past few months, financial regulators have raised concerns over the rise of non-bank market share, with the Reserve Bank of Australia (RBA) warning that continued growth in loans issued by non-banks could pose “financial stability risks”. The Council of Financial Regulators (CFR) has also noted the rise of […]
Microsoft joins regtech group to promote AI as a royal commission response
Microsoft will push its artificial intelligence technology deeper inside banks and use its membership of the RegTech Association to show regulators how AI could improve bank compliance to respond to problems exposed by the banking royal commission. Microsoft has just joined the RegTech Association, an industry group driving collaboration between banks, government and start-ups, as the technology giant increases the focus on regulatory compliance applications available on its Azure cloud services. Duncan Taylor, director of financial services at Microsoft, said its artificial intelligence technology could allow banks to identify transactions or advice in breach of ever more complex and onerous laws and regulation. It wants to become a bridge between […]
The rise of non-banks
Non-bank lending reached an 11-year high in September 2018, and the share of broker originated loans with non-majors and their affiliates increased by almost 3% in the January to March quarter. Capitalising on the trend private equity firms from across the world are now looking for a foot in the door, with a number of major acquisition deals confirmed since 2017: KKR took over Pepper Money; Blackstone became a majority stakeholder in La Trobe Financial; and Cerberus Capital Management acquired Bluestone. Royden D’Vaz, head of sales and marketing at Bluestone APAC, says, “This acquisition enabled us to pursue aggressive growth targets via mass rate cuts and strategic growth across all […]
Lender looks to triple growth through broker channel
A marketplace lender has surpassed its target for loan origination through the broker channel, and is aiming to triple growth through the third-party channel in the next year. Speaking to The Adviser, the CEO of personal loan provider SocietyOne, Mark Jones, reflected on the success of the brand over the 2018 calendar year, particularly referencing its renewed relationship with brokers. In June of this year, the company established its first broker partnership and set itself a target of seeing up to $4 million of loans from the channel by the end of 2018. However, Mr Jones outlined the strength of the third-party, noting that this channel’s originations had already surpassed […]
CBA to turn on Apple Pay in January
Commonwealth Bank of Australia will share a slice of its transaction revenue with the world’s largest company, Apple, after relenting to customer demand and agreeing to turn on Apple Pay in January, a move which indicates the technology giant has the upper hand in the battle to control smartphone digital wallets. More than two-and-a-half years after rival ANZ Banking Group made Apple Pay available, CBA’s move will put pressure on National Australia Bank and Westpac Banking Corp, who continue to prevent their iPhone-carrying customers from using them or their Apple watches to make tap-and-go payments. After sustaining a year of intense pressure at the banking royal commission, CBA’s group executive […]
Australia’s ETF industry set to grow in 2019
Australian exchange traded fund (ETF) industry is expected to see further growth in 2019, with increased allocations to fixed income ETFs, according to BetaShares’ annual predictions. This year to November, the Australian ETF industry finished the month at $41.1 billion, up from $35.5 billion in 2017. BetaShares identified three major predictions which would be expected to drive the ETF market further up in the coming months. The adoption of ETF model portfolios would increase as advisers would be seeking to add more efficiencies into their businesses and lower costs for clients. Additionally, more ETF strategists, investment consultants, portfolio construction specialists and robo-advisers were expected to enter the market. The fund […]
Moneysoft launches new website to support super fund focus
Financial technology company Moneysoft has launched a new website that showcases its growing range of services to large organisations including superannuation funds. One fund is currently running a pilot of Moneysoft’s Round-Ups solution, which forms a key component of Moneysoft’s new offering to institutions. Round-Ups lets people make small, frequent contributions to their investment accounts by automatically rounding up the spare change from everyday transactions into their super. It also allows members to automate or make one-off instalments into their super fund, bank account, or to pay off non-deductible debt, which fosters engagement and builds a foundation for more holistic personal financial advice. “Moneysoft’s push to large enterprises is a […]
