Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
We discuss our submission to the Senate Inquiry into funding for the SME sector. The proposed bill will provide incentives for the big banks, but do little to address the real issues. We offer an alternative approach, using data from our SME surveys. Inquiry into the Australian Business Growth Fund Bill 2019 [Provisions] – Submission … Continue reading “How To Jump-Start SME’s”
Steve Weston, fresh back from 4 years with Barclays in the UK was listening to the May 2017 budget speech, and his world changed. The budget contained a plethora of banking reforms, including Open Banking, big bank levies, the BEAR (cultural reform) and the potential to allow new Fintech bank start-ups an on-ramp in terms … Continue reading “A High Volt-age Bolt of Banking Lightening!”
Governor Lowe spoke at the Australian Payments Network Summit yesterday. He discussed the rise of electronic transactions, especially though the New Payments Platform, the high relative costs of international retail payments, and the need for, and potential of a Strong Digital Identity System. He also highlighted the decline in cash transactions which now accounts for … Continue reading “RBA Advocates A Strong Digital Identity System”
Saxo Bank 2020 Outrageous Predictions: Saxo Bank, a leading global multi-asset facilitator of capital markets products and services, has today released its 10 Outrageous Predictions for 2020. The predictions focus on a series of unlikely but underappreciated events which, if they were to occur, could send shockwaves across financial markets. While these predictions do not constitute Saxo’s official market forecasts for 2020, they … Continue reading “The reign of disruption continues as global central banks and governments lose control”
Dr. Johannes Beermann, Member of the Executive Board of the Deutsche Bundesbank spoke about the future of cash at the Payment Asia Summit. Shenzen, China. As the member of the Executive Board of the Deutsche Bundesbank responsible for cash management, I arguably very much represent what many of you may consider the “”old world of … Continue reading “A Positive View Of The Future Of Cash!”
Underestimating the appetite of premium quality borrowers has led to a revenue downgrade for fintech business lender Prospa and a 28 per cent reduction in its share price. Via InvestorDaily. Prospa shares crashed 27 per cent to a record low of $2.80 on Monday morning following the release of the group’s trading and guidance update. … Continue reading “‘Premium’ SME Borrowers Are Bad News”
Over a third of the world’s banks lag on technology and scale, and are unprepared for an economic downturn, according to global consultancy firm McKinsey and Co, via InvestorDaily. The firm used its annual banking review to warn banks that they risked “becoming footnotes to history” if they did not scale up and embrace technological … Continue reading “A Third of World Banks are Unprepared for a Downturn”
Neil Slonim, theBankDoctor has published an excellent four part series on the future of non-bank small business lending in Australia. The complete series is reproduced here, with permission. He concludes that smaller businesses need non-bank lenders especially if they have been rejected by a bank or have relatively modest but often urgent needs for funds or … Continue reading “The Future of Non-bank Small Business Lending in Australia”
Morningstar has low hopes for new banks like Volt, Xinja, 86 400 and Judo, which it says are at high risk of taking on low-quality debt in the pursuit of growth, via InvestorDaily. In a research report published this week, Morningstar analyst Nathan Zaia said neobanks are unlikely to cause any disruption in the Australian … Continue reading “New digital banks face ‘significant risks’”
Last week the Judge delivered his verdict in the ASIC-Westpac HEM case, essentially because of the ~260,000 loans examined in the case less than 5,000 would have potentially had their loans tweaked lower if the HEM was not used, whereas the bulk of the loans would have been bigger if HEM was not utilised in … Continue reading “The Fall Out from The ASIC-Westpac HEM Case”