NEWS
TECHNOLOGY CBA DIGITAL TOOL SAVES CUSTOMERS $481M Benefits Finder tool provided by Commonwealth Bank has helped its customers save $481m on utility bills and extra government payments. The tool, released in September 2019 as a feature of CBA’s mobile application, enables customers to access 270 government rebates and benefits, and has helped process over a million claims. NSW reported the highest number of claims at roughly 400,000. CBA customers can access benefits such as the Pandemic Leave Disaster Payment, Dine & Discover NSW, COVID Land Tax Relief and SME loan guarantee schemes. The most popular types of claims accessed by customers include unclaimed money on a federal and state level, unclaimed super, the Power Saving Bonus, Jobseeker-related payments, family tax benefits, rent assistance, and family energy rebates. THE
NODIFI PRODUCT TARGETS ASSET FINANCE BROKERS asset finance fintech Nodifi is to offer a new bespoke product to help brokers navigate the new best interest duty regulations. It represents a concerted effort to bring brokers back to asset finance after many departed due to the new rules, which reduced commissions for brokers and dissuaded many from engaging with consumer-facing asset work. Nodifi’s Alex Ventura said the product allows brokers to set fixed rates for consumer asset finance, with commission included. With BID, he said, “brokers had to dial down rates to the base rates as that is in the best interest of the consumers. When they do that, they don’t earn a commission on it”. The benefit of Nodifi’s fixed rates is that “the commission is already inclusive in what that has been dialled up to”, Ventura said. RISING
Samina Hussain-Letch, head of industry and payments, Square Australia
SQUARE TO LAUNCH NEW SME LOAN PRODUCT IN AUSTRALIA Fintech payments platform Square is making a move into the SME space in Australia, introducing its first lending product outside the US of the most recognisable fintech start-ups in recent years, Square Australia is set to enter the loan space in this country through a new financial services product, Square Loans. It will be the payment platform’s first venture into financial services, off the back of its lending product in the US. Square’s US arm has already financed over US$8bn in loans to almost half a million small businesses. “It’s our first financial services product to launch here, and the first time we’re launching outside the US,” said Square Australia head of industry and payments Samina Hussain-Letch. ONE
“The timing is very intentional because we’re now seeing businesses need to access alternative forms of lending more than ever. Coming out of COVID, businesses are in recovery mode and are often underserved. There’s often big hurdles in accessing capital, and Square is here to fix that gap. “We’ve been testing the product for the past couple of months, and we’re planning to make it available this quarter. The whole premise is to make access to capital fair and flexible … in a traditional loan application there’s loads of paperwork and often personal guarantees, for example against
a family home. We’re not asking for any guarantees for loans up to $75,000, and there’s also no paperwork involved.” Square is looking to draw on reams of client data, generated through its sales product, to help make responsible lending decisions and improve turnaround times. “We are making decisions based on the data that we have on our sellers and offering them a loan,” said Hussain-Letch. “If they choose to accept or to accept less than what we are offering, they can do that within three clicks and apply for the loan. Once they’re approved, they get the funds the next business day.” There is no interest rate on Square loans – just one fixed fee that the seller is told about up front and can be paid over the life of the loan. The repayment is based on a percentage of the seller’s daily sales.
SMALL BUSINESS PERCEPTION OF ACCESS TO FINANCE Sources: RBA, Sensis
Net balance*
“The premise is to make access to capital fair and flexible … we’re not asking for any guarantees for loans up to $75,000, and there’s no paperwork”
Samina Hussain-Letch Head of industry and payments, Square Australia
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-10
-10
-20
-20
-30
-30 2010
8
*Net balance is the difference between the percentage of firms indicating access is relatively easy and those indicating access is relatively difficult
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