Banks will prioritise tech, data and new partnerships this year
Currently, 58% of banking leaders are not actively partnering with fintechs, regtechs or other startups. Over the coming 12 months, 37% of Australian banking leaders are looking to invest in business transformation and technology and 33% are planning to invest in digital offerings and data. One in five banking leaders say they’ll be investing in new alliance partnerships over the coming year, to gain more market share and compete globally. These findings come from a new Banking Industry Report released today by technology provider TAS, which spoke to senior Australian banking executives to analyse their thoughts and priorities for the year ahead. Unsurprisingly, one in three banking leaders are concerned […]
Small and mighty: Meet the challenger banks nipping at the heels of the big four
A slew of challenger banks are poised to burst onto the Australian finance scene, in a bid to take on the big four, and change the way that Aussies think about banking. Typically offering cloud-based banking services without a bricks-and-mortar branch in sight, these so-called ‘neobanks’ say they will provide a more personal banking service, designed to be more in line with what modern bank customers want, whether that’s near real-time updates on spending and saving, or personalised lending for small business customers. Who are the challengers? They’re all still awaiting banking licences, but there are four major challenger banks coming out of Australia, at varying stages of readiness. They […]
Australian global payments provider Verrency bolsters its Global Advisory Board
As part of its global expansion strategy, Australian global payments provider Verrency has appointed well-regarded global payments industry executive Royal Cole to its Advisory Board. Royal is the Executive Vice President and Head of North America at Worldpay, a global leader in integrated omni-commerce payments, processing more than 40 billion credit and debit card transactions annually. Royal joins US-based payments luminaries Michael Kennedy, founder of Zelle, and Daniel Chatelain, founder of the BayPay Forum, as recent appointees to Verrency’s Advisory Board. Verrency Founder and CEO David Link said the appointment of Royal to the Advisory Board reflects the strategic direction that the company is heading as it continues to gain […]
Royal commission reforms boost investor opportunities in fintech
With the banks taking a battering at the Hayne royal commission, a raft of new fintech or alternative lenders is looking to take advantage of a more competitive playing field. For generations, risk-averse banks have been able to pick and choose to which consumers and small businesses they were willing to extend credit and at what price. But things are beginning to change. Ahead of any recommendations from the royal commission, the federal government is taking steps to foster competition. Last week, it followed the UK by flagging so-called open banking reforms, which will allow customers to direct personal data held by their existing banks to alternative lenders. Another reform, […]
Australia is taking steps to enhance its fintech industry
Australia has been looking to develop its own fintech ecosystem for some time now, and has made progress to establish itself as one of the bigger players in Asia, next to Singapore, Hong Kong, and China. However, there are still hurdles in the country, such as its four big banks having a very large market share — Commonwealth, Westpac, ANZ, and NAB together control over 80% of all owner occupier home loans and 85% of all investor housing loans — which makes it difficult for fintechs to establish themselves. However, the fintech industry in Australia may see a change soon. Earlier this week, the first restricted banking license was granted […]
Fintech threatens credit unions: Moody’s
Moody’s says new digital banks such as Volt, which received an Australian-first banking licence this week, will threaten credit unions and building societies. Credit unions and building societies’ lack of tech leadership means they are under threat from a new wave of digital banks, according to ratings agency Moody’s. Volt, co-founded by a former chief executive of mortgages at UK giant Barclays, this week became the first fintech granted a banking licence – allowing it to raise deposits up to a maximum $2 million. Moody’s Investors Service vice president Frank Mirenzi on Tuesday said the big four banks – ANZ, Commonwealth Bank, National Australia Bank and Westpac – were already […]
Ethereum, rival to bitcoin, gains traction
With a rising market value and a roster of high-profile patrons, Ethereum in recent months has become the next hot thing in cryptocurrencies. Ethereum is an open software platform, comprising a currency called ether, a public “blockchain” ledger for keeping track of transactions and tools for building so-called smart contracts that automatically make payments when their terms are fulfilled. Anyone can develop new applications that make use of its code. More ambitiously, the currency’s inventors and users are revolting against the growing centralisation of the internet under big companies like Google and Facebook by creating financial structures that can run themselves. Much like its older cousin bitcoin, however, ether is […]
