Blogs

In the absence of an alternative, credit cards were for years both a lucrative product for the major banks and an extremely useful financial tool for consumers. But in the space of about a decade, this pillar of the banking sector has been flipped on its head by the ‘buy now, pay later’ movement, supported by a new generation of tech-savvy, brand-nomadic consumers.

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In the increasingly fast-paced world of financial services, maintaining a competitive edge is critical. Failing to spot shifts in demand or changes in business conditions can result in a significant hit to profits.

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From zero to $39 billion in less than a decade. Unless you were operating under a business news black-out, you’d have clocked the Afterpay acquisition story of early August. Just seven years after it was founded by neighbours Nick Molnar and Anthony Eisen, the buy now, pay later platform that allows customers to pay for purchases in four interest free instalments became the subject of Australia’s largest ever corporate takeover. Square, the publicly listed US fintech controlled by Twitter CEO Jack Dorsey deemed it was worth a staggering $39 billion, in large part due to its extraordinary success in tapping into the millennial market.

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Much has been made of “challenger banks” and strides in digital innovation, and with good reason.

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Adoption of cloud-based resources and services by Australian financial firms continues to climb. However, many remain concerned about related security implications.

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