Appl Ex 8r

Application Exercise 8r: Financial services, technology and globalisation

  1. List five examples of fintech that you are aware of or have used recently.
    • AfterPay (buy now, pay later services)
    • BeforePay (receive salary/wages before pay day)
    • EdStart (small scale loans to parents for private school fees)
    • Kickstarter and Patreon (crowdfunding)
    • UpBank and Zinja – digital-only neo-banks
    • Wisr Round Up App – round up purchases and save the amount (for investment)
  2. Make a list of the potential benefits the increase of fintech may provide for small businesses and Australian consumers.
    • Access to goods and services on demand (for consumers) – to enable them to purchase when they want, and pay later
    • Reduced time spent completing financial transactions like banking (using online platforms instead)
    • Lower fees than traditional banking for customers
    • Lower transaction fees for small businesses
    • For businesses, encourages consumers to buy – ease of payment with card (e.g. using smartphone-based payment systems)
    • Small businesses can sell to customers globally, with low transaction costs
  1. Outline the potential economic costs to Australian industries where fintech is getting a foothold.
    • Very low levels of regulation – unlike traditional banks which are highly regulated.
    • Concerns about data privacy – and risk cyberattacks

No guarantee that information provided when using apps is stored safely, or not on sold to marketers and other big data harvesters.