The big banks in Australia should be very scared. Fintech is not a fad, or a buzz word. It’s an idea whose time has finally come.
Banks do have one ace up their sleeve. It might not save them, but it could help them adapt to a new reality…
Australia’s big banks have been relatively very lucky so far… But the tech is ready to roll and the political protection is gone thanks to the Hayne Royal Commission. How can you profit from this immense opportunity at hand?
Harvey Norman Holdings Ltd [ASX:HVN] and Latitude Financial Services announced yesterday they are partnering together to offer Latitude Pay. Latitude Pay is a buy now pay later service.
What happens when your ‘money’ isn’t worth the paper (or plastic) it’s printed on? What happens when those numbers in your internet banking mean nothing because you can’t withdraw it from the bank?
In the fintech wars, you can’t expect the big banks and finance companies to be passive spectators. They will react when they can.
Today, Australia and New Zealand Banking Group Ltd [ASX:ANZ] appointed Antonia Watson as acting CEO of ANZ, following the departure of David Hisco.ANZ’s share price weakened at today’s open on the news.But at the time of writing, shares were trading slightly higher at $28.28, up 0.21%.
That is exactly what the market is predicting today. The RBA Governor said as much in the minutes from the last meeting. In fact, you are unlikely to find anyone who doesn’t think the RBA will lower the cash rate today.
One thing I’ve been thinking about lately is plastic money and the fictitious numbers in banks we all trust.All this stuff, it’s not backed by gold or some other commodity. And it seems central banks and commercial banks can create as much of it as they like.
The RBA is due to meet less than two weeks out from the election. That is, two weeks from today (30 April). You can bet any cut will become highly politicised.