Be it robo-advisorsy, cryptocurrency, insurance quote bots, or new methods of payment, top Fintech companies like Lufax, JD finance and Zhongan (China) along with Oscar, Avant and Sofi (USA) are taking the world by storm. They simply offer more convenience at a lower price!
Will Fin-tech Drive the Big 4 Out of Business?
How has the Banking Industry Changed?
The competitive scene of our banking sector has changed dramatically. Recent surveys show, banks, with its poor service, long queues and lack of innovation are now seen as less interesting than a trip to the dentist.
From uncompetitive behaviour of ANZ and Macquarie cartelling over the ringgit price in 2016 to now spending $450 mil in establishing innovation labs to survive the changing environment, our banks are finally realising their positions as top financial institutions are being challenged.
This devastating attack by Fintech will last.
The Big Four know Millennials are set to become the largest customer demographic and they are racing against the clock to stay relevant – or at least be preferable to a trip to the dentist.
So what are banks actually investing in?
Main Investments: $100 million investment in the Reinventure fund through a strategic relationship in all 16 portfolios: Society One & Valiant (lending), Hyper Anna & Zetaris (data), OpenAgent (property), Flare (HR), Fillr (facilitation), Auror (crime prevention), Assembly (payments), Doshii & HeyYou (hospitality), InDebted (debt recovery), Coinbase (cryptocurrency) & Nabo (social media).
Partnerships: with Fintech hub ‘Stone & Chalk‘, Prospa for small business loans and data accelerator program ‘FUELD’
Minority Investments: Uno Home Loans, Quintessence Labs, Inloop and Surgical Partners.
Startups: ZipMoney $40 million
Main Investments: $50 million of investment funds for its internal business unit, NAB Ventures which holds a portfolio including Medipass (health), Veem in the US (rorex) and Wave in Canada (financial management platform).
Minority Investments: Online accounting system ‘Xero‘ (one of the first investors)
Joint-ventures: NAB Ventures joined with Reinventure to fund Data Republic (data) and Basiq (open banking platform).
Partnerships: with Telstra for a digital marketplace for small business, Localz in the healthcare space and Melbourne Business School for a customised course for its executives.
Startups: ZipMoney $260 million
Main Investments: Acquired TYME, a South African mobile banking operator which has allowed it to expand quickly in Indonesia, China and Vietnam.
Minority Investments: $14 million in Silicon Quantum Computing
Partnerships: Airtasker in identity verification, OnDeck for small business loans and Kounta for payments.
Main Investments: Micro-donation charity start-up Shout for Good, REALas (property).
Partnerships: ‘Honcho’ to help small businesses get started, ‘Invapay’ in the payments space.
Main Investment: Open banking system. mandated in Britain, only a matter of time before such open platforms are required in Australia.
Minor Investments: a £40 million ($71 million) warehouse financing deal with LendInvest and a portfolio financing deal with a US-based mobile personal finance platform MoneyLion, .
Partnerships: With four broking firms to provide Kubio, a cloud-based business loans platform for brokers and partnered with Xero, Tyro and BPay to provide an improved payment solution.