Latest Australian FinTech News, Insights & Analysis

Uncategorized

Australian FinTech deal activity more than halves in H1 2023

September 5, 2023

Key Australian FinTech investment stats in H1 2023: • Australian FinTech deal activity reached 47 transactions in H1 2023, a 55% reduction from the same...

FinTech News

Lumi, the Australian SME lender, secures $15m from Harel in a...

July 24, 2023

Lumi, an Australian company specialised in lending to small and medium-sized enterprises (SMEs), has successfully concluded a capital raise of $15m.

Latest Analysis

FinTech News

The digital revolution in meeting consumer duty standards

September 26, 2023

Gillmore Centre reveals Online lending as the leading asset for 2023

FinTech News

Gillmore Centre reveals: Online lending as the leading asset class for...

September 26, 2023

Company News

The complete guide to suspicious activity reports and AML measures

September 26, 2023

Online lending can be a more profitable asset than stocks, bonds and real estate, according to the latest research by the Gillmore Centre for Financial Technology. The research revealed that the newly developed framework of general characteristics-based portfolio policies (GCPP) can achieve an average rate of return of 8.86 to 13.08 percent each year in an extensive data set of online loans collected from LendingClub. This significantly outperforms an equal-weight portfolio of loans. The paper ‘Gaining a Seat at the Table: Enhancing the Attractiveness of Online Lending for Institutional Investors’ recommends that institutional investors “gain a seat at the table” when it comes to online lending, warning that investors may miss the boat due to a lack of awareness and understanding of the asset class. Ram Gopal, Director of the Gillmore Centre for Financial Technology at Warwick Business School and Co-Author, said: “Online lending is in danger of slipping by and costing institutional investors, in particular, a lot of money. Limited awareness of this emerging asset and the accompanying lack of understanding in industry, coupled with stringent government regulations, has led to this high potential investment flying under the radar.” “Online lending through a GCPP framework can have a transformative impact on institutional investors and unlock business growth for many organisations. Industry leaders and asset platforms should work together to ensure that businesses and investors collaborate on appealing investment opportunities that provide high pay-offs, underpinned by the research of world-class institutions that can lead innovations in emerging opportunities such as online lending.” Morris Strub, Associate Professor at the Gillmore Centre for Financial Technology and Co-Author, commented: “The absence of effective frameworks for investment in online loans and other new asset classes continues to complicate the investment landscape. But the Gillmore Centre’s development of GCPP can help sophisticated investors to harness the potential of new asset classes emerging from Financial Technology. Our framework can be applied not only for investment on online lending platforms, but also for traditional assets such as stocks or bonds. The paper was authored by a quartet of leading university academics including Ram Gopal, Director of the Gillmore Centre for Financial Technology at Warwick Business School; Xiao Qiao, assistant professor at the School of Data Science at the City University of Hong Kong; Moris Strub, associate professor at the Gillmore Centre; and Zonghao Yang, PhD student at the City University of Hong Kong.

FinTech News

Wilshire Indexes turns to Alveo’s DaaS for corporate actions data optimisation

September 26, 2023

Tag: Australian FinTech

Australian FinTech deal activity more than halves in H1 2023

Lumi, the Australian SME lender, secures $15m from Harel in a...

Latest Analysis

The digital revolution in meeting consumer duty standards

Gillmore Centre reveals: Online lending as the leading asset class for...

The complete guide to suspicious activity reports and AML measures

Wilshire Indexes turns to Alveo’s DaaS for corporate actions data optimisation