Fintechs fill the void left by commission
Fintechs are filling the gap in SME lending as the big four banks concentrate on the fallout from the royal commission, according to one online lender. The fintech commercial lending space opened up in around 2013 and since then has reported an annual growth rate of around 79%. According to chief commercial officer at Moula, Matt Leeburn, part of this growth has been down to fintechs focusing on lending to SMEs, which make up more than 97% of all Australian businesses. He said that while the space is still “a while off” being a significant threat to the banks, there is a huge opportunity to help the “underserved” SME market. […]
WA Fintech business doubles following major acquisition
WA Fintech Fair Go Finance doubled in size from 1 July following the acquisition of Capfin Money, to create one of the largest non-bank personal loan lenders in the Australian small loan market. Fundco Pty Ltd which trades as CapFin Money (previously Spot Loans) was purchased by Fair Go Finance, providing an exciting opportunity to scale the Australian operations and access a wealth of data. The combined operations of Fair Go and Capfin now establishes the business as one of the largest non-bank personal loan lenders in the Australian small loan market. With this scale there are significant advantages as Artificial Intelligence (AI) becomes a reality in the risk management […]
OnDeck passes US$9 billion benchmark globally in online lending
Australian FinTech adoption outpacing most global markets; sector reaching maturity faster than US experience Development of quality online lending industry key to growing Australia’s small business sector; closing credit gap The OnDeck Group, representing the subsidiaries of the US-listed OnDeck Capital Inc., has announced that it has lent more than US$9 billion to more than 80,000 small business customers in just over ten years of lending. This figure includes the Group’s businesses in the US, Canada and Australia. Comparatively, the Australian market is estimated to reach over A$2 billion in annual originations by 2020. According to Mr Cameron Poolman, Chief Executive Officer OnDeck Australia, while Australia has been a relatively […]
Here’s how innovation has transformed banking and lending
The effects of technology and the disruptions technology make, manifests itself in clearly perceivable ways. This is very evident in many sectors – in a short span (just eighteen months after its release) Google Maps had knocked out GPS navigation device makers and Amazon and Taobao (Alibaba) have disrupted how consumers shop for goods by moving them to online from offline (O2O). Enterprises are worried about being Uber-ed or Airbnb-ed as new age companies are challenging traditional ways of doing business. Banking and Lending space have also gone through an amazing level of rapid innovation and disruption starting at the turn on the new millennium. Traditional banking monoliths can no […]
Xplora invests US$1m into BLOCKLOAN
Xplora Capital has announced the purchase of USD $1 million (AUD $1.35 million) worth of tokens from BLOCKLOAN – a new blockchain peer-to-peer lending marketplace. Blockchain and crypto are triggering a societal and economic shift before our eyes. Financial institutions are failing to address the market needs. It’s time for a new solution to old problems. Mark Finch, Managing Director of Xplora Capital stated, “As an early investor into BLOCKLOAN and working in the Financial Services space for 20 years we believe in Co Founder’s Michael and Bill’s vision and roadmap for providing the ability for people to access credit on a global scale and better rates than the banks. […]
Keeping up with the customer in the digital age
Demanding customers, increasing regulation and clunky IT systems are proving serious speed bumps for Australian companies who want to grow in the digital age. Lending is facing a particularly sensitive atmosphere because of the banking royal commission, with many disruptors investing heavily in “regtech” – technology that simplifies compliance. These were some of the views aired by participants at a recent business roundtable event hosted by Fairfax Media and KPMG Enterprise which discussed Australia’s digital transformation. Anthony Baum, the CEO of Tic:Toc, which provides home loans that can be fully approved within 22 minutes, says technology is “way better” than traditional manual loan approval methods. “40 per cent of people […]
Zip targeting $1b of sales and 1m customers
More than half a billion dollars of sales went through credit card disrupter Zip Co’s payment system over the latest financial year, more than twice the volume of the previous year but only a quarter of that spent on competitor Afterpay. But as the popularity of “buy now, pay later” offerings continues to surge among Millennial shoppers, Zip – of which Westpac Banking Corp owns 17 per cent – is targeting $1 billion of sales over the coming year. “We are only just beginning and are well positioned for a bumper 2019 financial year,” said CEO Larry Diamond. Zip announced a $1.2 million loss at the cash earnings level for […]
Fintech Skippr scores $16m funding from fintech heavy hitters
Small business financing start-up Skippr has shrugged off concerns that the indefinitely delayed IPO of its venture-backed peer Prospa could put off investors in the sector, by attracting some of the local fintech scene’s biggest hitters to a $16 million debt and equity financing round. Pepper group co-founder and former chief executive Patrick Tuttle and SocietyOne and Douugh co-founder Andy Taylor have both invested in the round, which is comprised of $1 million in equity from high net worth investors, and $15 million in debt. Skippr was founded two-and-a-half years ago by former NAB senior corporate agribusiness senior associate and MarketInvoice team lead Alistair Lamond alongside former fund manager Patrick […]
