How consumers can help clean up the alternative lending market
An influx of alternative lenders and a seemingly unbreakable cycle of bad debt for borrowers have given the short-term loan sector a bad reputation. However, consumers have a role to play in helping clean up the industry. The first step – understanding how lenders should be acting. ASIC requires lenders to conduct ‘reasonable inquiries about a consumer’s financial situation.’ This means inquiries must be made about the consumer’s actual situation and, while alternative lenders are known to be more lenient when it comes to bad credit scores and being on Centrelink, they must still gather enough information about circumstances likely to affect a consumer’s ability to repay their loan. Daniel […]
Fintech slams aggregator “monopoly”
A heated statement by emerging fintech Hero Broker has accused major aggregator groups of working together and stacking the deck against newcomers to the industry. In a submission to the Productivity Commission’s Inquiry into Competition in Australia’s Financial System released last Wednesday (27 September), Clint Howen, founder of Hero Broker, called upon the commission to examine the role that aggregators play in the market. He recounted his experiences with the major aggregator groups, claiming that Hero Broker was denied entry into the market despite meeting the Australian Securities and Investments Commission’s (ASIC’s) compliance regulations. He claimed that there was a “collective discussion” between key figures within the mortgage industry to […]
How Crowdfunding has influenced start-ups
You have a great idea that you would like to bring to the market. However, you have little to no capital in kick-starting product development. Furthermore, you don’t really have the business acumen and the research and development needed to make a solid business presentation to a group of investors. So, how do you go about finding the seed funding you need to start turning your idea into a reality? Many entrepreneurs in recent years have turned to crowdfunding as a way to reach a large audience to fund product ideas and business models. What Is Crowdfunding? Crowdfunding is an alternative way for businesses, and especially start-ups, to source capital […]
Yield-hungry investors switch their cash to peer-to-peer lenders
Peer-to-peer lender, RateSetter, says 56 per cent of money invested with it is from savers withdrawing their money from their bank savings accounts. Yield-hungry investors are understandably frustrated with earning next-to-nothing on their cash held at their banks, with interest rates at historic lows and likely to stay that way for the foreseeable future. With the the advent of peer-to-peer (P2P) lenders, online platforms that match investors and borrowers, investors can get up to three times the interest paid by term deposits. P2P lenders charge borrowers lower rates of interest than they would pay on bank loans, while lender-investors earn higher interest than they could get with a bank term […]
Alternative Finance: Australia becoming regional leader
Australia’s alternative finance market has grown by 53% over 12 months according to a report released by KPMG, becoming the second largest in the Asia-Pacific region. The report revealed Australia’s alternative finance market increased from US$27 million in 2015 to US$610 million in 2016 as Aussies turn to peer-to-peer lending (P2P), balance sheet business lending and crowdfunding. In the US$245.28 billion Asia-Pacific alternative finance market, China was found to be the leader, accounting for 99.2% and representing 85% of the total global market. P2P consumer lending was Australia’s second most popular alternative finance model behind balance sheet business lending, increasing from US$43 million in 2015 to over US$158 million in […]
Australian fintech starts exporting to the world
When Australia starts exporting more than just iron ore and coal to the world, it’s hard not to get excited. While these two exports alone carry the Aussie economy a long way – in 2015/2016 they made up 26.4 per cent of all exports at $82.3B – they certainly have a finite life. Once it’s all dug up, the party’s over. With this inevitability looming on the horizon, it’s evident Australia needs to start harnessing its brains a little more, instead exporting its ideas to the world, rather than just its dirt. So imagine how exciting it was to hear that two Australian fintech companies in the lending space are […]
Have you got your tickets to LendIt Europe 2017? It’s Europe’s largest global fintech & lending conference
LendIt Europe 2017 is Europe’s largest global fintech and lending conference, and returns to London on October 9-10, 2017. This year’s conference is expanding with the industry to cover the hottest topics in fintech including digital wealth, blockchain, insurtech, digital banking, and much more. Nowhere else can you meet 250+ industry leaders, 150+ investors and 1,000+ attendees from fintech companies, investment firms, banks, service providers, regulators and the media from across Europe and beyond. With six tracks of content including Innovations in Lending, Investor Insights, Policy & Regulation, as well as our PitchIt startup competition, there is content for everyone. You can now save 15% with Australian FinTech! Simply enter […]
IDC names top 10 fastest growing fintech companies in A/NZ
IDC Financial Insights has unveiled a list of 10 fast-growing fintechs in Australia and New Zealand (A/NZ) as part of the broader FinTech 101 list for Asia/Pacific. “IDC’s FinTech Fast 101” refers to the fast-growing fintech players in Asia/Pacific based on extensive on-ground analysis of the dominant fintech players within the region. 10 Fastest Growing FinTechs in Australia and New Zealand Afterpay Touch Group Airwallex CoinJar Data Republic Harmoney HashChing identitii Prospa SocietyOne Xero Note: List is arranged alphabetically, Source IDC, 2017 IDC’s fintech list makes a reference to the Financial Insights’ Triple U framework — ubiquity, utility, and usability. This is a framework that evaluates fintech data across key metrics such as addressable […]
