NZ facing unprecedented fintech changes this year

Source: MakeLemonade.nz

Auckland – New Zealanders will experience more unprecedented changes in financial technology in 2019 like never before, FintechNZ general manager James Brown says.

Brown says Kiwis will see some amazing new developing trends this year, such as financial unbundling gaining momentum which will drive more competition and more transparency as New Zealand has witnessed in the life insurance sector.

“It’s all happening this year. We will see new investment platforms will emerge like Sharesies and now Hatch, which now offers customers the opportunity to buy shares in the US Wall St stock market, Brown says.

“Wearable technology will advance and the younger generation likely to be the early adopters. They are aware of more adoption of smart watches while Visa is looking at payment options in sunglasses.

“Regtech will help speed up the anti-money laundering / know your customer process which will lead to more partnering between the large incumbents and fintechs. Using machine learning and better technology will not only speed up the process but make it more secure thus reducing fraud.

“Traditional markets like estate agencies will become targets to new disruptive tech entrants, similar to Purple Bricks in the UK which is presenting a fixed fee offer. Old established markets are open for disruption.

“Buying and selling a property is a long, costly process but with new providers not having lots of branches, they can offer the same service, with an app that allows the seller, agent and potential buyer to be in contact to answer any questions. It provides more information about the area, police stats etc and saves thousands of dollars.

“Intangible assets will be more openly discussed, and we could see banks consider lending against it. The best examples of this are Uber and Airbnb. They don’t own taxis or hotels but deliver a service better than the more traditional taxi or hotel chains. Intangible assets now account for 87 percent of a companies’ value.

The insurance sector will continue to be under scrutiny with the government taking a hard stance around sales techniques and commission-based products being eliminated, Brown says.

Consumers will be given even more choice about how and when to pay such as instalments or even borrowing against future earnings as we have seen in the US.

NZ will move away from open banking to open data with the chief executive of one of the big banks already announcing the likely impact to their bottom line.

“Open banking is just focused on the financial services sector where as open data is about the end user and the experience they have with their data from buying online to sharing health information.

Customer experience will be pushed more into the limelight. New fintechs don’t have the legacy systems to deal with so can offer a better and more personalised outcome.

FintechNZ and the AI Forum NZ will be staging an event in Wellington on Thursday next week about how artificial intelligence will transform the customer experience across financial services.

For further information contact Make Lemonade NZ editor-in-chief Kip Brook on 0275 030188.

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NZ heading to become a cashless society

Source: MakeLemonade.nz

Auckland – Wearable technology will be the next major financial tech change for consumer to pay for goods and services, FintechNZ general manager James Brown says.

New Zealanders need to look beyond the card or phone for just making simple transactions, such as iris eye recognition as a method of identifying people, he says.

“Kiwi small to medium businesses should consider a strategy around non-cash payments. Sweden has been highlighted as the number one contender for going cashless with Australia not far behind and it could go cashless by 2020.

“MYOB did a survey which found that New Zealand could become cashless by 2028. But I believe to become globally recognised as a fintech leader, New Zealand needs to be bolder and that’s why FintechNZ has created an open ecosystem group to look beyond open banking.

“So, what does all this mean for anyone running a business or setting up a business in New Zealand?

“We are seeing new compliance and the Reserve Bank and the Financial Markets Authority have found that businesses need to build a non-cash strategy to meet the demands of their digital consumers because it is quicker and more secure.

“We know quite a number of businesses do not use payWave because of the cost. However, not to use it can negatively impact their business.

“We need to look at how much it costs small to medium businesses in this country to deposit cash; how could that be better invested; is there an angle around making money; and finally the cost and the impact to the environment.

“Things are changing fast in the financial tech sector. The Royal Bank of Scotland is looking at a name change and launching a new digital bank called Bo, again playing to the new millennial way of thinking which is digital transactions.

“We need more collaboration between all the financial services providers to agree to some industry standards and work harder on providing customers with more options beyond cheques and cash and make it cost effective,” Brown says.

For further information contact Make Lemonade NZ editor-in-chief Kip Brook on 0275 030188

Photo: James Brown

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