Global FinTechs take on Big Four in new Australian frontier
When U.S.-based financial technology company Acorns launched in Australia in February, its mobile app that helps people invest loose pennies in stock markets received nearly 70,000 downloads in just over two months, beating its own expectations. The ‘virtual piggy bank’ chose Australia as its first foreign market thanks to the country’s deep Internet and mobile penetration and tech-savvy population, Managing Director George Lucas told Reuters. Acorns’ entry is a reflection of rising interest in Australia from overseas financial technology – or FinTech – companies, drawn by its heavy banking concentration and limited competition, consultants and financial advisors said. The country’s $348 million alternate finance lending market, which includes peer-to-peer lending […]
Fintech threatens Australia’s biggest banks – Roy Morgan Research
The global fintech phenomenon threatens Australia’s traditional banks by stealing their most valuable customers. This new digital market is growing exponentially leaving traditional banks looking dangerously like commodity utilities. According to Accenture investment in fintech grew globally by 201% in 2014. [1] Australia has the fifth highest rate of fintech use in the world. [2] Fintech is the digital, often peer-to-peer, channel enabling tech-savvy consumers to borrow or invest without ever having to deal with a traditional bank. In early April Australian peer-to-peer start-up SocietyOne reportedly reached $100m of loans on its digital platform. The burning question for the traditional Australian banks is, which of their customers are most at […]
Blockchain may transform banking, says CBA CEO Ian Narev
CoinDesk, an online news publication covering bitcoin and its underlying technology, published a feature article last week with the headline: “Have we reached peak blockchain hype?” That’s a fair question, given the extensive global attention the blockchain, or distributed ledger technology, has been receiving of late. Diverse applications are being touted, traversing banking, law, conveyancing and logistics to overturning corrupt governments in developing countries. With banks around the world rushing to join projects to build “permissioned ledgers” (blockchains with a restricted membership), proponents in the financial services sector are growing acutely aware that hype can turn into a noose. And so blockchain expectations management is in full swing: technologists inside […]
Fintech adoption tipped to double in 2016
The level of fintech adoption among consumers is set to grow significantly in the next 12 months, new research has revealed. EY’s inaugural FinTech Adoption Index – a survey of 10,131 digitally-active consumers in Australia, Canada, Hong Kong, Singapore, the UK and the US – found that 15.5 per cent had used at least two fintech services (financial services products developed by non-bank, non-insurance, online companies) in the past six months. It also suggested that adoption rates among digitally active consumers could double within the next 12 months. EY Australia’s fintech leader, Anita Kimber, said it is a change that will require traditional financial services companies to revisit their product, […]
Fintech revolution a bank threat
Bank bashing is an old sport usually practised by external critics, but 2016 could be the year when big banks discover that their greatest threat comes from within – something that should concern bank shareholders as much as employees. Technology lies at the heart of what’s happening in the banking world; and some of the smartest people in the industry are voting with their feet, quitting old-style banks for the new generation of ‘fintech’ companies. At the core of the fintech revolution lies the appeal of faster and better computer systems, coupled with the attraction of a new business run by hand-picked tech-savvy staff, a structure that attracts less government […]
Peer-to-peer lenders attract investors with double-digit returns
Savers are earning almost 10 per cent a year by lending online through banking’s answer to eBay. Peer to peer or P2P lenders, to use their cyber-savvy name, are auction sites for potential lenders and borrowers who bid an amount and an interest rate. The biggest are RateSetter, aimed at ordinary investors, and SocietyOne, which caters for professionals. The most common reason borrowers apply for a peer-to-peer loan is to buy a new car. Both run the credit checks for you. Still, it’s a big jump from investing in a government-guaranteed term deposit to an unsecured loan to somebody you don’t know and never will. But so far the risk […]
More super funds tipped to launch robo-advice
More superannuation funds are looking to implement automated “robo-advice” for members as a way of satisfying the competing demands of bringing down fees, while also improving their members’ access to financial advice. The pressure on funds to improve advice is coming from both regulators and a growing band of tech-savvy, bank-owned competitors.At the same time fees are in the firing line, and some super funds cannot afford large teams of financial advisers. “Robo-advice” is basic financial advice that a super fund can provide to members via online tools. Normally, it takes into account personal details such as the individual’s age, balance and retirement savings goals. It is increasingly viewed as […]
