Why FinTech matters in Australia?
Australia has experienced 25 years of uninterrupted growth fueled by a strong Chinese demand for natural resources, the resulting boom in mining and a flourishing housing industry. Those industries have provided great liquidity to the financial sector and filled the loan books of banks – making the Australian ‘Big 4’ among the world’s most profitable banks. But due to China’s slower growth and the mining/housing boom stagnating, Australia must look for new avenues of growth. FinTech might be where the future lies for Australia for 2 reasons. First, at the country level, FinTech can play a vital role in helping the positive transition that is occurring in the national economy from mining to smart tech: as said by Australian Treasurer, ‘competition policy and micro-economic reforms will be driven by the innovations in FinTech ‘. Second, at a global level, FinTech is an opportunity to position Australia as a leading hub in Asia pioneering global initiatives in block chain, cybersecurity, international settlements or big data. The mining boom being over, Australia could export not only gold but its financial services expertise to maintain its footprint in Asia. The Government is backing FinTech both nationally and internationally with the launch of ‘landing pads’ hosting Australian FinTech start-ups in Israel, Singapore, Shanghai, London or Berlin. The conditions are in place in Australia for a great FinTech ecosystem to emerge.
SelfWealth:
The Peer to Peer social network for investors
Market opportunity an oxymoron
‘Self-reckoned investors want to do it by themselves, but they want someone else to do it for them’. They prefer using online brokerage because they don’t want to pay the 3 traditional layers of fees imposed by wealth management funds (fund management fee + administration platform fee + financial advice fee). Yet, they want people to advise them and copy the best portfolios. As a P2P social network for investors, SelfWealth enables investors to do that based on the intelligence of a community of investors.
Products SelfWealth INTELLIGENCE, SelfWealth TRADING
Business model Traditionally, wealth management funds take a % fee on the money managed by the fund. But ‘why would you pay 10X more if you have $1,000,000 vs. $100,000 when the service provided is exactly the same?’’, Andrew Ward mentioned. SelfWealth offers a subscription based solution: $20/month Q no matter how much money investors have on their account. The technology has been developed by Microsoft, then bought back by SelfWealth. It has already been integrated in existing banking system (HSBC, Citi to scale in Asia). SelfWealth operates under a robot
Competition:
eToro, RobinHood but they don’t really offer peer to peer solutions. ‘Our real competitors are actually the social networks: Facebook, Twitters, Newsfeed’, Andrew Ward.
Differentiation: The 1st social network to offer P2P portfolio construction in Australia based on the intelligence of a community of investors.
Contacts: ‘We are almost the Google to investing; we collect the intelligence from the community, then put filters on who are the people we want to follow in order to get the best constructed portfolio.’ – Andrew Ward
Produced by FinTech TWIN$ – August 2016
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SelfWealth provides a suite of benchmarking tools so you can compare your own portfolio to other investors in the Community based on performance, SafetyRating and WealthCheck Scores. Each SelfWealth member has an alias, so any shared information is anonymous.
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