Peer to peer finance in Australia

  • A visit to Australia over the New Year was purely pleasure, but professional interest meant I couldn't resist taking a quick look at what is happening in the alternative finance scene down-under.

    What I found was something fairly nascent. The dominant name is personal loan provider, SocietyOne, which launched in 2012.  Rupert Murdoch has recently taken a stake in it, as has WestPac (so there's a clue there if we need one). RateSetter launched in November and ThinCats opened in December.  But there is not much else - particularly for business loans.

    The Australian banking system is reputed to be the most profitable in the world.  As in the UK, it is built on 4 main pillars: NAB, Commonwealth Bank, ANZ and WestPac.  The combined value of unsecured personal loans, credit card balances and small business loans is said to be more than $200 billion.  Bank loans grew 7% last year according to a report by PWC Australia.

    As we've seen in the UK, demand is building for more competition.  A recent official enquiry into the sector, the Murray review, recognised the “highly concentrated” nature of the industry and the potential of P2P lending to inject new blood. The report's recommendations fell short of the bold policy measures that we've seen used to accelerate P2P in the UK - perhaps because the system is seen as less systemically broken - but there is every reason to think that P2P lending will take off in Australia in the same way as it has done in the US and UK.

    More UK platforms should take a look. The economy is stable, if slowing slightly, the language is English and the law is significantly based on the UK system.  Add to that the sun shines and they drive on the left - what's not to like?!

    If any platforms want an experienced P2P marketing partner to work with down under, our thongs are packed, the eskie is full and we're ready to go.

Related articles

  • Read More

    InsurTech needs to learn from Altfi and FinTech

    The winds of technology-induced change have been ripping through the financial service industries for quite a while now – banking and fund management being prime examples – but up until now the...

  • Read More

    FinTech as a force for good

    Kids, they say, grow up quickly and nowhere is this more true than in FinTech. Barely five years ago, the phrase wasn’t even invented. Now it is the collective noun for billion dollar enterprises,...

  • Read More

    Insurance Industry jobs could be lost to robots and AI

    Speculating on how far the robot revolution could go is nothing new – Hollywood has been producing apocalyptic films for decades showing machines ruthlessly taking over from humans as masters of...

  • Read More

    What is a bank?

    One of the recurring themes at this year's AltFi Europe event, organised by the excellent AltFi team, was a quest for the definition of a bank, or more particularly a bank of the future. Is it any...

  • Read More

    Giles Andrews' appointment marks another step on P2P’s road to maturity

    Students of the history of finance may one day look back on Giles Andrews’ appointment to the Chair of MarketInvoice (MI) as a major milestone in the evolution of the P2P sector....

  • Read More

    New community for Bank of England’s FinTech Accelerator

    The Bank of England has made steps towards improving relations between itself and the Fintech sector with the launch of its new community. The community intends to bring the Bank and Fintech-related...

  • Read More

    Credit where it’s due

    Sometimes you just have to say ‘well played’....

  • Read More

    Professor to sort Bank Referral Scheme

    The much-vaunted Bank Referral Scheme master-minded by the Treasury went live on November 1 last year, followed by deafening silence ever since. Anecdotal stories have been trickling out that suggest...

  • Read More

    Is consumer car finance the next big opportunity for P2P?

    Two very clear trends are emerging in the Alternative Finance sector. First, with lenders casting aside any doubts about security to get at the attractive yields available, the pressure is on for...

  • Read More

    Challenger banks to receive unexpected boost from RBS

    At long last, the shareholders of RBS (still 73% owned by the State) have received a piece of goodish news that should help raise their spirits. Faced with the prospect of missing the deadline for...

Take the first step

To find out more about how we can help you grow faster, please get in touch. We'd like to hear from you.  Or try our instant marketing healthcheck, it's free!

Quick Contact

Quick contact

Close

Contact us

T 01825 765617

E hello@themarketingeye.com

Our offices

Full details of our offices in London and Uckfield more

Request a call

Close