Fintech set to reshape financial services despite slump
Global fintech investment’s boom year of 2015, when all the planets aligned and the hype factor reached its peak, was always going to make activity levels in subsequent years look feeble by comparison. Even so, the 47 per cent slump in funds invested in 2016 to $24.7bn, revealed yesterday in KPMG’s Pulse of Fintech publication, is eye-opening. Both macro and micro forces are at play. With the former, the uncertainty created by the Brexit vote, the schism between new US president Donald Trump and the tech community, a perceived economic slowdown in China and significant fluctuations in exchange rates all conspired to make investors more cautious. At a more micro […]
Australia weathers fintech slump
Global investment in fintech companies almost halved last year as “froth” comes out of the burgeoning industry and investors wait to see if they can successfully disrupt incumbents such as banks and insurers, according to a new report. Fintech investment funding declined to $US24.7 billion ($32.17bn) last year from a bumper $US46.7bn in 2015, driven by fewer merger and acquisitions, and private equity investments, KPMG found. However, the less mature Australian fintech industry bucked the trend as investment soared to a record high of $626 million last year, up from $185m in 2015 and $461m in 2014. The increase was powered by Champ Private Equity’s acquisition of Pepperstone, Stirling Products’ […]
Peer-to-peer lender Harmoney coming to Aussie shores
Peer-to-peer lender Harmoney has recently set up shop in Australia, with Brisbane the first lucky city to host the fast growing company. According to Harmoney Australia General Manager Ben Taylor, the lender is expecting to be popular with Aussie homeowners 40 years and older. “Early signs following our beta testing in Australia show that mom-and-pop borrowers will be quick to embrace a competitive, customer service focussed marketplace lending solution for debt consolidation, home improvement and travel,” he said. Initially, the platform will be open to borrowers only, for loans between $5,000 and $35,000 with terms of 36 and 60 months. Rates on unsecured loans start at 8.99% p.a., with no […]
IRESS’ technology investment increases to meet demand
Listed Australian fintech IRESS predicts a continued increase in its product and technology investment as it meets growing client demand in Australia and internationally. IRESS is one of Australia’s largest financial technology businesses with offices in Australia, the United Kingdom, South Africa, Canada, Singapore and New Zealand. It employs more than 1,750 people. IRESS today announced revenue for 2016 of $389.7 million, up 8% on 2015. Reported net profit after tax was up 7%. For the 2016 year, IRESS invested $96 million in product development and technology for financial services including banks and financial advisors. IRESS’ Chief Technology Officer, Andrew Todd, said strong demand from clients […]
Digital advice: from robo revolution to enterprise evolution
As digital financial advice gains ever-growing traction among superannuation providers, the hype around “robo-advice” gives way to enterprise-level requirements. Decimal Software CEO Nic Pollock says B2C wealth management and enterprise-grade digital financial advice serve very different needs, and customers. Federal Treasurer Scott Morrison recently told a G20 conference in Germany of his plans to encourage more robo-adviser start-ups to launch in Australia. Undoubtedly he believed doing so would enhance opportunities for more Australians to gain access to financial advice and in turn provide better financial security and retirement outcomes. But his comments highlight a general lack of understanding of the differences between “robo-advisers” and the digital advice needs of the […]
PropertyShares taps Australian Dream
The Australian dream has always been of property. For generations Australians have pined and toiled, with the dream of one day owning their own home. The lure has been strong enough to build cities. When Canberra, the nation’s capital was built, the commonwealth government promised three bedroom red brick bungalows to attract workers to the public service. So it only made sense that when P2P arrived on Australia’s shores, it would go for property. “Australia has always had a strong love affair with property,” says Scott Price, founder of PropertyShares. “People were told from a very young age about the great Australian dream of owning your own home. The birth […]
Auswide Bank is increasing equity stake in P2P lender MoneyPlace
Auswide Bank Ltd is increasing its equity stake in peer-to-peer lender MoneyPlace Holdings Pty Ltd. Today’s announcement means Auswide Bank will have a controlling interest of at least 51% in MoneyPlace with the prospect of increasing that interest up to 75% dependent on the final take up of other MoneyPlace shareholders in a capital raising initiative being undertaken by MoneyPlace. Auswide Bank acquired a 19.3% equity stake in MoneyPlace in January 2016 while also committing funding to the Melbourne-based P2P lender’s consumer lending program. Managing Director, Martin Barrett said Auswide Bank has been impressed with the platform, skills, capability and performance of MoneyPlace over the last 12 months. “Our funding […]
Crowd-sourced equity funding bill to pass Senate
Retail investors will soon be able to buy up to $10,000 of equity in their favourite business ideas, with “crowd-sourced funding” legislation set to pass the Senate with Greens support. The legislation will allow unlisted public companies with annual turnover or gross assets of up to $25 million to advertise their business plans on licensed crowdfunding portals, and raise up to $5 million a year to carry them out. Investors can put up to $10,000 a year each into an unlimited number of ideas, with a 48-hour cooling off period applying. “Crowd-sourced equity funding will offer a new funding option for small businesses,” said Treasurer Scott Morrison while introducing the […]
