Two new fintech players in lending and deposits

Two new fintech players in lending and deposits

For yield-starved self-funded retirees and superannuation funds alike, locking into the best of the increasingly meagre term deposit rates on offer should be a given.

But like teeth flossing – which is also good for us – we just don’t do it. As a result we’re leaving billions of dollars of margin on the table for the banks, which despite their recent travails don’t exactly deserve charity.

Reserve Bank of Australia data shows that approved deposit taking institutions (ADIs, mainly the banks) held $624 billion of deposits in term accounts as of April 2019, with a further $92bn held in at-call or transaction accounts.

That’s more charity than the Salvos and Vinnies combined.

According to rates comparison house Canstar, current advertised rates on a $100,000 12-month term deposit vary from 2.55 per cent to a miserable 0.99 per cent. So in theory, going from a worst to best could improve a struggling self-funded retiree’s pre-tax cash income by 157 per cent.

Even an investor locking up funds for five years can get no better than 2.55 per cent, such are the non-expectations of a rates rise in the foreseeable future.

Meanwhile, listed Trustees Australia has changed its name to Cashwerkz (CWZ) 30c, a fintech platform for showcasing best-in-show term and at-call deposit rates. Trustees Australia acquired the business from Adcock Private Equity via a reverse takeover in mid 2017.

As with the likes of Canstar, Cashwerkz clients can compare the providers for the best rate and choose the best one. But they can also transact the switch with the click of a mouse.

To read more, please click on the link below…

Source: Two new fintech players in lending and deposits – Tim Boreham | Livewire