Digital banking and neobanks
If all you’ve ever known is dollarmites and the big four, the idea of an online bank may seem a bit intimidating to you. But as banks roll out new app features and handy online services, the reliability of online banking grows, and makes room for digital banks and neobanks to emerge. If you’re curious about the world of online banks, we’ve answered some frequently asked questions below. What is digital banking and what online-only banks are there in Australia? Digital banks, or online-only banks are exactly what they suggest, banks that operate online through a computer or app on your phone. This means they don’t offer in-branch service like […]
Sydney fintech Frollo scores $65,000 grant to take “Fitbit for finance” app to the next level, and reduce stress for Australians
Fintech startup Frollo has taken home a $65,000 grant from the MetLife Foundation, having been named best financial solution for low- to moderate-income Australians at MetLife’s Inclusion Plus competition for its gamified personal finance solution. Established in 2016, North Sydney-based Frollo is a personal finance app that uses gamified features to help users identify and change bad spending habits. The startup also licences its software to financial institutions and challenger banks, and founder and chief Gareth Gumbley tells StartupSmart it now has “tens of thousands” of users — a figure that is “edging towards the hundreds of thousands”. Gumbley has a background working in a consumer finance business and saw a […]
‘The clock is ticking for banks’: Morgan Stanley warns banks need to up their game before they get disrupted
Banks need to transform themselves or they’ll be left in the dust by new fintech companies, according to a new report. With fintech companies raising $58 billion globally in the first half of 2018, banks are feeling more pressure than ever to spend on their own technology. This is compounded by the fact that fintech companies don’t suffer from legacy IT systems and can provide banking services 50% cheaper than big banks. “Pressure is mounting for banks to innovate and disrupt themselves fast, before someone else ‘eats their lunch’,” Morgan Stanley analyst Betsy Graseck wrote in the report. Big banks are already stepping up their tech investments in response. JPMorgan’s […]
Fintech Prospa has now written $750 million in loans
Fintech Prospa, a lender to small business which in June postponed an ASX-listing after being pinged about unfair loans terms, says it has now written $750 million in loans. Loans for the year to June were $367 million, a 70% increase on the previous 12 months and 9% higher than prospectus forecasts with strong momentum in the fourth quarter. For the six months to June 2018, loans hit $211 million, up 16% on prospectus forecasts and up 61% on the previous corresponding period. Earlier this month Prospa confirmed it had removed or amended some of its contract terms seen as unfair following a review by corporate regulator ASIC. Among the […]
Fintech 101: Core concepts for the future of banking
Everyday it feels like someone, somewhere has coined a new banking term. But as Australia continues to take big steps towards innovation, the average Aussie might feel left in the dark when it comes to understanding what’s in store for the future of banking. So to keep you in the loop with all the latest in fintech, we thought it might be worth getting the basics down first. What is fintech? Put simply, fintech stands for ‘financial technology’ and can refer to any technology that is used in the finance industry to provide products and services. Just remember that fintech usually refers to newer, innovative products and services. For example, […]
BPAY Group launches Sypht and Lodge
BPAY Group, announced today the launch of Sypht and Lodge. The addition of the new companies is a strategic move for BPAY Group and signals its transformation beyond payments. BPAY Group recently worked with BCG Digital Ventures to identify frictions in the Australian marketplace that it could help address from its unique position within Australia’s financial services industry. The result has been the introduction of two new companies, Sypht and Lodge, within the BPAY Group family of businesses. The companies operate independently and are headed by their own CEOs. Sypht uniquely uses machine learning and artificial intelligence to unlock the power of data. Sypht’s recently appointed CEO is Warren Billington. […]
PlayChip digital currency exchange “PlayXchange” registered
The PlayChip Foundation has been registered as the first digital currency exchange in Australia with its own native token. Last week the PlayChip Foundation Ltd was registered to provide Digital Currency Exchange services by Australian regulatory body AUSTRAC. AUSTRAC, the Australian Transaction Reports and Analysis Centre, is Australia’s anti-money laundering and counter-terrorism financing regulator and financial intelligence unit. The registration is pursuant to subsection 76E(2) of the Anti-Money Laundering and Counter-Terrorism Financing Amendment Act 2017 (AML/CTF Act Amendment Act 2017). The registration signals a huge step forward to the Foundation, which will operate a cryptocurrency exchange called the PlayXchange as part of a global payment solution to its more than […]
Brave fintech MoneyMe to test the market
Trying to list a financial services company while a royal commission into banking is going on is not for the faint-hearted, but it does not appear to be preventing small financial technology lender MoneyMe from attempting the move. Moneyme.com.au offers personal loans, cash loans, short-term loans and fast cash advances and is attempting to launch an initial public offering through Bell Potter and Ord Minnett. The company was co-founded about two years ago by Clayton Howes, who secured $30m in debt and equity funding at the time, according to reports. No doubt the deal will be a tough ask for the brokers involved in trying to list the business, but […]
