A daily download of SME, startup, fintech and tax news from around Australia.
Years of investing in technology is starting to pay off at just at the right time for the major banks, with productivity savings helping to sustain dividends even though revenue is under intense pressure and compliance costs have spiked in response to the royal commission.
Despite the banking sector being hit by a severe storm this year – lending growth is at its lowest rate in a decade, return on equity is at its lowest level since the financial crisis, and net interest margins fell below 2 per cent in the second half for the first time – three of the majors were able to keep dividends stable, while Commonwealth Bank increased its by 2¢ per share.
Until recently, the idea of waiting a day or two for a bank transfer to reach your account was normal, however consumers are starting to demand immediate and seamless payment alternatives. With upcoming developments in the Australian financial services sector, we should start to see these demands met – if not by banks, then by FinTech firms aiming to transform the financial services industry.
Twelve months after the government announced the introduction of a Consumer Data Right ( CDR ) in Australia, Data61 has released a working draft of the standards that will underpin it.
Shares in Xero jumped after the cloud accountancy player reported a 37% rise in revenue for the first half.
A short time ago, the shares were up 4.7% to $A45.01.nnRevenue was $NZ256.53 million ($A240 million), up 37%.
The rivalry between long-time competitors MYOB and Xero is alive and well, with MYOB saying it will be winning a greater share of new online cloud accounting subscribers by year’s end.
The claim was made by MYOB on the day of Xero’s half-year results, in which it reported growing its subscribers by almost 14 per cent to 1.579 million.
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