BUSINESS FINANCE NEWS – Oct 16, 2020
Hot Money, More Gloom, Funding The Fintechs
Australian finance providers with trendy, gen cool names like Airwallex, Douugh and Sempo are setting the world of finance afire, according to tech news provider www.itmunch.com, which has released a list of the 12 hottest and fastest growing fintech startups.
No surprise that Afterpay tops the pops. The article tells us that Sydney is the home of the fintech with more than half of the nation’s tech firms based their churning through $60 billion annually. The next Afterpay is probably in this list.
Commercial and asset finance is a specialized area which often attracts brokers with little or no experience. The result could well be that a business owner, who has consulted her mortgage broker for advice, ends up with a raw deal simply through incompetence.
So, kudos to the Commercial & Asset Finance Brokers Association which is preparing to deliver a quality education program to brokers operating in the commercial finance sector.
Offering brokers the opportunity to obtain a professional designation backed by quality learning will benefit businesses and the broker profession alike.
Covid Kills Companies as well…
Judo Bank estimates that 160,0000 of Australia’s 2 million small businesses could collapse as a consequence of the pandemic.
The bank also predicts a debt blowout that will need to be carefully managed to avoid slowing an economic recovery.
The Australian Financial Review reports Judo’s co-CEO, David Hornery, observing that there is still a lot of water to flow under the bridge yet.
Where does the money come from?
Have you ever wondered where all those emerging “fintech” lenders get their money?
A new one seems to enter the market every day, but who is bankrolling it?
In the case of market sweetheart Afterpay, five warehouse lenders have tipped in the cash.
These included National Australia Bank and Citi in Australia. Across the Tasman, the Bank of New Zealand provides a facility and in the U.S. the backers are Goldman Sachs and Citi.
The Market Herald reports a KPMG estimate that global investors poured $25.6 billion into fintech business over the first half of 2020 along.
The writer observes a paradox in that to compete with the big banks the so-called disruptors need their backing.