The FinTech Report

Making digital currencies available for everyone: from retail to Stablecoins to DeFi/Web3: a discussion with Coinbase The FinTech Report Podcast: Episode 63: John O’Loghlen, MD Coinbase APACFounded in 2012, Coinbase is a digital currency wallet and platform where merchants and consumers can transact with digital currencies like bitcoin, Ethereum, and Litecoin. Coinbase want to make digital currency accessible and approachable for everyone. Coinbase is listed on the NASDAQ – ticker code is ‘COIN’ – so they are regulated by the SEC. Coinbase has just under 3800 employees, and US$320 Billion funds under management.John O’Loghlen is MD for Coinbase APAC - Prior to Coinbase John spent a decade with Ant Group and Ali Baba, spent many years working in China and other Asian countries. He started his career with Goldman Sachs in London. In this episode we cover:Fundamentals of digital assets: are they an asset, a currency, a commodity?Over the past decade we’ve seen crypto adoption increase. How many Australians are holding digital assets? In addition to crypto, what other types of digital assets are they holding?Retail, institutional and ‘Base’ – the developer platform.Coinbase’s developer platform, Base, has been growing both in user numbers and transaction volume. What is Base and what are some of the innovative projects being built on it?We recently saw Australian institutions like AMP and Future Fund take positions – albeit small ones - in Bitcoin. Are we starting to see a shift in adoption from retail to institutional investors?Is growing your SMSF, institutional investor, private wealth client book a priority for exchanges? Institutional investors tend to have lower risk thresholds than retail investors. How can you get them over line with this asset class?We know Coinbase has advocated to urgently establish a national regulatory framework for digital assets. Why is this so important?The issue of de-banking is a major barrier in adoption of digital assets, whereby banks are closing accounts of individuals and businesses for activities that relate to digital assets. Why is de-banking such a problem?https://www.linkedin.com/in/john-o-loghlen-b25494b/  

Dan Jowett, CEO, Openmarkets Group “It’s been a stunning change” says Jowett, when discussing retail equity tradingPrior to OMG, Dan was COO of stockbrokers Shaw & Partners, and prior to that was with accounting and consultancy firms PWC and KPMG.Openmarkets Group describe the business as a technology-driven stockbroker with a mission to provide innovative products on a global scale to advance wealth management.The business comprises Openmarkets, one of Australia's largest retail brokers providing a white-labelled tech stack for intermediaries and connecting fintechs to markets via enterprise APIs, and TradeFloor, Australia's leading risk management solution used by over 60% of the addressable market.In this podcast we discuss:1.Openmarkets founded in 2013. How has the business evolved?2.You’re one of Australia’s largest retail brokers, what’s the competitive landscape? 3.A recent game-changer in the trading and wealth industry has been the rise of many low-cost / ultra-low brokerage digital trading services. What opportunity does this pose for Openmarkets?4.In the past decade, Australia’s traditional wealth and advice models have changed (especially since 2018 Royal Commission). Has this created an opportunity for technology platforms?5.Does Openmarkets have a view on AI and how AI could shape wealth management, trading tools, insights, advice?6.Finfluencers – what do you think of them? rise of online investment education content across YouTube and Tik Tok. Has this new wave of online trading education changed how you or your customers think about your business now and into the future?   7.M&A opportunities?  and you’re considering a potential listing? 8.What sort of influence has the US volatility had on your business/clients, be it regulatory activity, tariffs, markets, listing plans?

Damir Cuca, founder of Basiq and a tech veteran with over 20 years of experience, shares insights on the evolution of open banking in Australia. He discusses how fintechs played a pivotal role in Basiq's success and the challenges of selling to banks versus innovative startups. Damir reflects on his motivations for selling to Cuscal and offers advice for founders considering an exit. Additionally, he emphasizes the importance of financial literacy for his children, intertwining personal finance education with modern technology.

https://helloclever.co/Caroline Tran, Co-Founder, hello clever Key messages:Payments as an engine for growth (for merchants) because they can add loyalty and instant cash back - this is the best use case for RTP (using NPP in Australia)Caroline's fundraising journey was very hard, with lots of calls. But persistence paid off and she has received investment from US VCs - and is herself now part of the San Francisco Angel NetworkCaroline’s background is accountancy and sales; she’s worked for well-known brands such as James Hardie, WPP, and IPG Media – in 2021, Caroline co-founded Hello Clever, which she describes as ‘The World’s Leading AI-powered payment solution that seamlessly integrates Loyalty, RTP (real time payments) and Intelligent Insights’. Caroline is also an investor in other startups, including Open Ai. In this episode we discuss:1. What led you to create hello clever? 2. What problem are you solving? 3. How does the platform work? How is Ai used?4. How should fintechs/banks think about ‘Ai in banking’?5. Describe a user journey 6. Who are your customers?7. What’s your business model? Where do you make money8. High growth? How?9. Team size? What funding have you received?10. Future plans? New products, new markets?   

Christie is looking to write 12 x US$120k cheques: apply nowApply now: https://www.techstars.com/accelerators/tech-central-sydney-nswChristie Jenkins, Managing Director, Techstars Sydney  Christie has 25 years as a professional athlete; in Beach Volleyball, in Cross Fit, and Trampoline; she was #1 in Australia in all 3, and achieved a Gold Medal in 2010.Over this period Christie has also been a coach, a consultant to brands such as BUPA, Commonwealth bank and ANZ. Christie is an investor, advisor, and has held roles at Blackbird, one of Australia’s top VC funds. Christie has also been a founder, creating sporting teams in Europe.She’s now MD of TechStars in Sydney, and looking to make a number of seed or early sage investments, so an excellent guest for The FinTech Report Podcast.In this episode we cover:What is Techstars? The program in Sydney/Australia – who should apply?Sectors in fintech that are excitingWhat makes a successful application?How else TechStars helps – especially mentorsValuations, investment amount, follow on roundsGet in touch with Christie: https://www.linkedin.com/in/christiejenkins/

This is not financial adviceThis podcast has been generated by AiAMP's FY 24 results show a business that has largely completed its portfolio reshape and is now focusing on driving growth, particularly within its wealth businesses, while also developing a digital bank offering. Key Financial Highlights (FY 24 vs FY 23):Underlying Net Profit After Tax (NPAT): Increased by 15.1% to $236 million (FY 23: $205 million). This is AMP's preferred measure of profitability, reflecting the underlying performance of the business units.Statutory NPAT: Reduced by 43.4% to $150 million (FY 23: $265 million). This decline primarily reflects business simplification spend and the loss on sale of the Advice business in FY 24, compared to gains on sale of AMP Capital and SuperConcepts in FY 23.Underlying Earnings Per Share (EPS): Increased by 25.0% to 9.0 cents per share (FY 23: 7.2 cents per share). This was boosted by improved earnings and a 22% reduction in shares outstanding due to the on-market share buyback program.Top Trends and Analysis:1. Strategic Shift to Wealth and Retirement Specialism: AMP is positioning itself as a pre-eminent retirement specialist in Australia, leveraging its heritage and innovative products. This strategy is visible in the performance of its wealth businesses:◦Platforms: Saw a significant increase in underlying NPAT, up 18.9% to $107 million. This was primarily driven by strong net cashflow momentum (excluding pension payments), up 96.7% to $2.8 billion (FY 23: $1.4 billion). Growth in Managed Portfolios to $19.1 billion was a key driver of higher inflows. ◦Superannuation & Investments (S&I): Underlying NPAT increased by 26.4% to $67 million. Net cash outflows (excluding pension payments) significantly improved to -$1.0 billion from -$6.4 billion in FY 23, reflecting resilient inflows and a focus on retention. 2. AMP Bank's Performance and Digital Push: The Bank's underlying NPAT decreased by 22.6% to $72 million (FY 23: $93 million). This was a result of consciously managing the loan book with subdued volume growth due to prioritising Net Interest Margin (NIM). NIM for the year was 1.26% (FY 23: 1.42%), with compression moderating in 2H 24. Growth in the residential mortgage book returned in 2H 24, driven by selective pricing and focus on segments like self-employed.Capital Management and Shareholder Returns: AMP completed its $1.1 billion capital return program since August 2022, including share buybacks and dividends. This program led to a 22% reduction in shares outstanding. The Board declared a final dividend of 1.0 cent per share, 20% franked, taking the full year dividend to 3.0 cents per share. The Board is targeting a dividend payout of 2.0 cents per share per half through 2025, subject to conditions. The Group CET1 surplus capital reduced to $139 million in FY 24 from $300 million in FY 23, influenced by dividends paid and share buybacks. Future capital management will balance growth, shareholder returns, and managing the balance sheet.5. The Bank is undergoing a strategic shift with the digital bank launch, which is critical for its long-term competitiveness and funding mix, though current performance is impacted by margin focus.Overall, AMP is moving from a period of portfolio simplification and capital return towards a growth phase, heavily focused on its strengths in wealth and retirement, while also evolving its banking proposition through digital channels. The ability to continue driving growth in wealth, successfully execute the digital bank strategy, and maintain cost discipline in a volatile market will be key factors for its future performance.These notes and this podcast are all Ai generated - source documents were all AMP announcements on the ASX website.

This is not financial advice. This podcast was produced using Ai platforms, and the Ai generated voices have 'North American' (ie USA) accents.This podcast was produced using only information from a publically available PDF document that CBA listed on the ASX website. The Ai generated 12 minute podcast provides an in-depth look at the financial performance of the Commonwealth Bank of Australia (CBA) for the half-year ended 31 December 2024. We used an Ai platform to review the CBA 2H 2024 report; the Ai reviewed the bank's income and expenses, including net interest income and operating costs, across its various business segments like Retail Banking, Business Banking, and Institutional Banking. The report also outlined key financial metrics such as capital adequacy, loan impairment, and funding sources, alongside a discussion of the prevailing economic conditions and the bank's approach to risk management. The report does contain detailed financial data and metrics that an equities analyst would typically use as inputs to perform a valuation analysis. Some of the key information presented in the report that would be relevant for an analyst's valuation include:•Net Profit After Tax: The Group's statutory net profit after tax for the half year ended 31 December 2024 was $5,134 million, an increase of 8% on the prior comparative period. The cash net profit after tax was $5,133 million, a 6% increase on the half year ended 30 June 2024 and a 2% increase on the half year ended 31 December 2023. Management considers cash NPAT their preferred measure of financial performance.•Earnings Per Share (EPS): Basic cash EPS from continuing operations was 306.9 cents, and basic cash EPS including discontinued operations was 307.0 cents for the half year ended 31 December 2024. Statutory basic EPS from continuing operations was 307.5 cents, and statutory basic EPS including discontinued operations was 307.0 cents. EPS figures are crucial for valuation methods like the Price-to-Earnings (P/E) ratio.•Dividends: An interim dividend of 225 cents per share, fully franked, was declared. The dividend cover on a cash basis was 1.4 times. The dividend payout ratio on a cash basis was 73%. The Board considers factors like business growth, capital needs, market expectations, and EPS growth when determining dividends. Dividend information is key for dividend discount models and assessing shareholder returns.•Return on Equity (ROE): The cash ROE for the half year ended 31 December 2024 was 13.7%. Statutory ROE was 13.8% for continuing operations and 13.7% including discontinued operations. ROE indicates how efficiently the bank is using shareholder funds to generate profit.•Capital Position: The Bank maintained a strong capital position with a Common Equity Tier 1 (CET1) Capital ratio of 12.2% as at 31 December 2024, which is well above APRA's minimum regulatory requirement of 10.25%. Capital ratios are important for assessing the bank's stability and ability to absorb losses or fund growth.•Net Tangible Assets (NTA) per Share: NTA per share was $40.32 as at 31 December 2024. NTA provides a book value per share, which can be used in various valuation comparisons.•Economic and Operating Environment: The report mentions challenges for customers due to cost of living pressures and a slowed Australian economy, but notes moderating underlying inflation. These factors influence the bank's future earnings outlook and perceived risk.To repeat. This is not financial advice. This podcast was produced using Ai tools.

The FinTech Report Podcast: Episode 58: Alan Shield, Founder of RFi Data InsightsAlan Shields, Founder, RFi Data Insights; the lessons for all fintech foundersAlan has recently authored and published a book on startups called “The Startup Handbook – the Founders Guide to Building a Business”Alan’s book reaches into his experience of founding his own company, as well as mentoring others. Alan has 23 years of experience in data analytics, business intelligence, and market research, Alan is a passionate entrepreneur and business leader who helps financial institutions make data-driven decisions. Alan has successfully established and expanded businesses in London, Singapore, and Sydney. Alan was the Founder and Director of RFI Global, a data analytics and insights company, providing strategic guidance and technical data expertise to the world's leading financial services organisations.Now at Trilogie Partners, Alan helps companies prepare for and execute fundraising efforts, review strategies to unlock growth potential, and offer practical advice to improve execution.** Special offer: email Alan for a copy of the book: Alan Shields al@trilogie.partners   **Or, connect on LinkedIn and DM Alan: https://www.linkedin.com/in/abjshields/  In this episode, Alan discusses:RFi: Data insights businessBiggest challenges with fintech startups struggling with = TAM, SAM, SOM: do you really know these for your business?Product market fit? Do you talk to your prospects and customers?Focus of the book, why he wrote it and how he believes it can help founders.Founder's perspective on lessons learned from growing a data business globally over nearly 2 decades - bootstrapping, international expansion, culture/ talent and funding etcOpportunities in banking for both banks and fintechs (customer behaviour, innovation and competition) 

Building the payments infrastructure for B2B clients, bringing payments lessons from Europe into Australia, and helping Australian fintechs scale globallyPiers Cracknell has 20+ years’ experience in banking, payments & fintech across senior roles at NAB, CBA and global fintechs in Australia & the UK.Piers was recently hired by European bank – Banking Circle – to set up their Australian operation, which is known locally as BC Payments Australia,In this podcast we discuss:What does BC Payments do in Australia?Difference between Banking Circle (EU) and BC Payments Australia?Building the payments infrastructure for customersIn Australia: Typical clients (B2B, acquirers, issuers), access to NPP, access to cross border payment schemesWhat’s driving growth for BC Payments? Time and cost of settlementNeed for KYC and AML frameworks, understanding all types of risks (eg onboarding process, ongoing monitoring and supervision of client)Experience in Europe – how is it relevant for Australia?View on future of payments – domestic & cross border

Julian Fayad, Founder and CEO of LoanOptions.ai, is transforming the loan application landscape with AI. He shares how his platform can get funds into a customer's account in just 36 minutes. Julian discusses the integration of technology in asset finance, emphasizing the importance of speed and unbiased lending. He also explores the balance between tech and personal interaction in banking, the challenges of growing a fintech without venture capital, and strategies for international expansion.