Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
The latest US inflation data suggests inflation is more intractable than the markets were hoping. So what are the consequences for rates and markets in the months ahead. Opinion is divided, but more analysts are forecasting higher rates and for longer, and are becoming more aligned to the FED’s position. http://www.martinnorth.com/ Go to the Walk … Continue reading “US Inflation Is Hanging Around Like A Bad Smell!”
The appalling proposed changes to Responsible Lending got stalled in the Senate last week. But the Government is going to try and convince the cross-benches they should be passed for the sake of the SME sector. However, this is absolute misdirection, as SME lending (globally as well as locally) are impacted by a range of … Continue reading “The SME Responsible Lending Misdirection [Podcast]”
The appalling proposed changes to Responsible Lending got stalled in the Senate last week. But the Government is going to try and convince the cross-benches they should be passed for the sake of the SME sector. However, this is absolute misdirection, as SME lending (globally as well as locally) are impacted by a range of … Continue reading “The SME Responsible Lending Misdirection”
Business Broker Eddie Pampalian from Network Infinity joins me to discuss the plight of SME’s based on his experience dealing with a wide range of small and medium businesses. https://networkinfinity.com.au/en/about
We discuss our submission to the Senate Inquiry into funding for the SME sector. The proposed bill will provide incentives for the big banks, but do little to address the real issues. We offer an alternative approach, using data from our SME surveys. Inquiry into the Australian Business Growth Fund Bill 2019 [Provisions] – Submission … Continue reading “How To Jump-Start SME’s”
The US Federal Reserve Board on Thursday released Uncertain Terms: What Small Business Borrowers Find When Browsing Online Lender Websites, a report that examines the information that prospective small business borrowers encounter when researching and comparing credit products offered by online lenders. Nonbank online lenders are becoming more mainstream alternative providers of financing to small … Continue reading “Fed Says Some SME Online Lender Websites Are Flawed”
Underestimating the appetite of premium quality borrowers has led to a revenue downgrade for fintech business lender Prospa and a 28 per cent reduction in its share price. Via InvestorDaily. Prospa shares crashed 27 per cent to a record low of $2.80 on Monday morning following the release of the group’s trading and guidance update. … Continue reading “‘Premium’ SME Borrowers Are Bad News”
A new trend has emerged in the SME lending space, with Australian small businesses more likely to use a non-bank to fund growth rather than their main bank, according to a national survey, via Australian Broker. Small business owners’ reliance on non-banks is the highest it’s ever been, with 18.7% of SMEs planning to fund … Continue reading “Alt Funders Overtake Banks As SME Cash Flow Is Stretched”
Australian SMEs are still suffering as 70% of brokers agree that cashflow is “definitely more” of a problem to small businesses now compared to 12 months ago. Ninety-two percent of them believe finance is “more difficult” to access after the Banking Royal Commission, according to a recent poll of the broking community commissioned by B2B … Continue reading “SMEs continue to struggle with cashflow”
APRA has provided a justifying summary of their actions relating to home lending regulation, but warns that “many of the underlying structural risks associated with high household debt remain and will do so for some time”. Despite this, they have chosen to keep the countercyclical capital buffer at zero. Housing credit growth is slowing, but … Continue reading “APRA Holds Countercyclical Capital Buffer; Releases Assessment Of Measures To Lift Home Lending Standards”