From saving you money, or lending you money, through to providing investment advice - the FinTech sector is stripping out inefficiencies that have plagued the Finance industry for far too long. With access to greater information and end-to-end solutions, there’s a growing number of digital disruptors with platforms that can be leveraged by your business.
Our panel explored:
- What defines a platform, product or service as FinTech
- How FinTech applications can improve doing business
- How BlockChain can be useful to business and when should it be applied
- Robo advisors
- Impact of the national framework for e-invoicing which is targeted at all Australian businesses
- Issues facing the sector including trust, security and privacy
Top Ten Takeouts
- FinTech is essentially the solving of a finance or transaction based problem using technology.
- FinTech is an enabler for other industries. It unlocks efficiencies, access to capital, information and services that other industries may not have previously had access to.
- At a simple level a blockchain is a network, just like the internet is a network. It’s a very ‘dumb’ network that will allow you to transport anything from a file, photo, financial transaction, video or a contract.
- The advent of blockchain means that lots of the expensive banking systems that have been maintained for decades, can be in theory be replaced by something that’s very reliable.
- The replacement of legacy banking systems with blockchain creates a huge change management project which hasn’t been given the attention it deserves to date.
- Australian banks, being ‘transaction’ focused, are attracted to blockchain as it’s an international trend and to be considered serious players in the global banking market, they need to be involved.
- An outcome of the GFC meant that compliance for providing financial advice now forms about 30% of the cost of giving advice. This has priced advice out of the reach of many Australians. Robo-advice can help overcome some of these frictions.
- The ASX’s greatest concern around robo-advisors is an algorithm going rogue and providing inappropriate advice.
- Australian small businesses are owed $26B at any one time. The national framework for einvoicing is looking to address this inefficiency by delivering invoices electronically, thereby providing a read receipt proving the client has the invoice.
- We need open API standards for banks, which the UK government is currently working towards. This would allow FinTechs to understand actual user behaviour rather than forcing them to guess or request users to manually upload the data themselves.