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Super Funds to charities: PokitPal is using CDR & round-ups to empower users

Posted on by Rafael Damalio
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With rising inflation and the growing cost of living, more and more Aussies are finding themselves in debt. In fact, Australians have one of the highest percentages of net household debt, with the average household debt increasing by 7.3% from 2021 to 2022.  

But Pokitpal is on a mission to change this narrative. Having originally launched a B2C round-up product to help Aussies save money and pay down debts, PokitPal  has evolved into a B2B white-labelled solution helping organisations build and launch their own cashback and round-up platforms. 

Earlier this year, Sipora was acquired by Pokitpal, allowing the team to expand their impact and help organisations  from charities to superannuation funds and even investing platforms tap into the full potential of round-ups.  

We sat down with Sipora’s co-founder, now Head of Partnerships at PokitPal, Samuel Torpey to learn more about the story behind the platform, their recent acquisition by Pokitpal and how Open Banking is supporting this team on their journey. 

What is Sipora? 

Sipora is Australia’s leading round-up platform, on a mission to help organisations and their customers find new, innovative ways to harness the power of round-ups. 

You’ve probably heard of round-ups in the context of investing, with apps helping customers to round up their everyday purchases and invest the rest. But the Sipora team knew round-ups could be used for a wide range of uses, including saving and paying down debts. 

As Samuel shares, “We came across a study that explains that customers are four times more likely to save $5 per day versus $150 per month… because a small amount seems easier to reach and more palatable. So we built our entire platform around that idea.”

PokitPal and Sipora: The perfect pairing

Samuel always knew that Sipora’s round-up product was better suited to a larger ecosystem of products, rather than a standalone app.

Earlier in 2023, PokitPal (a cashback shopping platform with over 1,500 retail partners all over Australia and New Zealand) acquired Sipora. 

PokitPal was already servicing customers like Virgin Money, Raiz and Beem It with their white-labelled cashback and rewards product, while Sipora was also servicing organisations with their white-label round-up product. It was clear the pair would ultimately be a better fit working together under one name. 

“The two products really complement each other well. We found that rather than working side by side, working under the PokitPal banner would probably be better suited for us both in the long run,” explains Samuel. 

How PokitPal is helping charities harness the power of round-ups   

The pandemic caused major disruptions to a range of industries, including charities and not-for-profits. Event-based donations, in particular, took a major hit and forced charities to get creative with their fundraising efforts. 

Interestingly, people’s willingness to donate didn’t change during the pandemic. Instead, they needed new ways to give back to the causes and organisations they cared about. Luckily, PokitPal’s round-up product was the perfect solution.

Samuel explains, “We were able to work with a number of charities to launch their own round-up product themselves. It allows people to round-up their everyday purchase to the nearest $1, $2 or $5 and donate that to the charity.”

Individuals have total control over how much they donate through the use of spend control, while charities reap the benefits of a white-labelled solution that could be up and running in weeks – not months. 

How Open Banking via Basiq fits into the equation

A big challenge for PokitPal was gaining access and connecting to their customer’s accounts. Previously, they were reliant on individuals entering their banking details which proved a major point of friction in the onboarding journey. 

Many users didn’t have their banking details on hand when signing up, causing them to drop off right at the point of conversion. 

But with Open Banking, powered by Basiq and Sipora’s Representative status, PokitPal streamlined and fast-tracked this process.  As Samuel reveals, “I believe that Basiq is the leader in this space in Australia and New Zealand, especially when it comes to Open Banking.” 

“We’ve already seen an 80% reduction in the time it takes a user to connect their account, just from changing providers to Basiq and using its Open Banking connectors. This is crucial for us when it comes to customer satisfaction and retention,”

“Transistioning has opened up a large cohort of new customers banking with institutions that only allow connectors via Open Banking – like Up Bank that is servicing hundreds of thousands of young Australians that fit within our target demographic,” explains Samuel.

Security is also a big focus for Samuel and his team. Choosing an Open Banking provider that is heavily invested in building and maintaining a secure platform (like Basiq) gave him and his customers valuable peace of mind. 

What’s next for PokitPal? 

Samuel explains the major focus for Pokitpal is connecting with as many organisations as possible that want to deliver cashback rewards and round-up products to their customers. Their immediate focus is to expand their white-labeled partners across both Australia and New Zealand.  

As Samuel says, “We’re looking for new partners, people that have scoped out trying to build a cashback or round-up product and how can we help them. And we’re really excited to be able to go out and share the news of the acquisition and really focus on delivering more products to a larger number of organisations.”

Important Information: This article has been prepared by Basiq Pty Ltd (ABN 95 616 592 011) (Company), and was originally published on 24 August 2023 on www.basiq.io. Information is current as at the publication date, and the Company has no obligation to update or correct this article. The information contained in this article is of a general nature and is not intended to address the objectives or needs of any particular individual entity, and should not be regarded in any manner as advice. To the extent permitted by law, the Company and its related bodies corporate will not be liable for any errors, omissions, defects or misrepresentations in the information in this article or for any loss or damage suffered by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise. © 2023 Basiq Pty Ltd

TaxTank enables customers to manage tax in real-time with Open Banking

Posted on by Rafael Damalio
taxtank-is-empowering-customers-to-manage-their-tax-in-real-time-with-open-banking

For many, June 30 is an annual milestone loaded with stress and confusion. Not only are the rules and regulations around tax law continually changing, but many individuals don’t know their financial position until it’s time to lodge their tax return. 

For companies, accounting software has made it easy to keep tabs on their tax position. But for individuals, self-managing their taxes has been clunky, time-consuming and clouded in uncertainty. 

That’s exactly what TaxTank is on a mission to solve. TaxTank is a low-cost, cloud-based software helping to simplify tax for everyday Australians. 

Loaded with smart tax tools and automated bank feeds powered by Open Banking, TaxTank makes it easy to maximise deductions, minimise tax and reduce end-of-financial-year stress for property investors, sole traders and individual taxpayers.

What is TaxTank?

At its core, TaxTank aims to help individuals make informed financial decisions ahead of tax time. The software is cloud-based and low-cost (starting at just $6 per month), packed with features designed to make self-managing income, assets, expenses and overall financial position stress-free.  

For founder and Gold Coast-based tax specialist Nicole Kelly, the platform champions a fairer, more transparent tax system for individuals.

Amidst the ever-increasing cost of ATO scrutiny, TaxTank was born from the belief that tax simply cannot be a once-a-year event and be effective. There had to be a better way to improve compliance whilst still making tax simple to manage, easy to understand and hassle-free for everyday Australian taxpayers. 

To achieve this, TaxTank empowers customers with the tools they need to plan, manage and simplify their tax affairs in real-time. 

Nicole Kelly, Founder of TaxTank says,  “working as a CPA and taxation specialist for nearly 10 years, I would see client after client struggling to keep on top of their tax affairs. At tax time it’s a mad rush to consolidate expenses while spending hours searching for receipts to substantiate any deductions for the past year.”

“We wanted to develop a platform that gives the individual taxpayer the ability to not only manage their taxes more effectively but provides a transparent view of their real-time tax and financial position, 365 days a year. This gives the individual and those working with an accountant the opportunity to identify and take advantage of additional tax saving opportunities before the financial year ends,” Nicole added.  

TaxTank uses a range of ‘tanks’ or digital containers that store different parts of an individual’s information:

  • Work Tank manages work-related income using live bank feeds, along with storing receipts for work-related expenses.
  • Property Tank keeps tabs on an investor’s properties and portfolios to monitor the cash, tax and equity positions.
  • Sole Tank is designed to help sole traders manage their income, with invoicing and reporting tools, too.
  • Holdings Tank is designed to manage investors’ stocks, shares and cryptocurrencies, keeping tabs on their portfolio’s value and any gains or losses they’ve made.
  • Spare Tank is a secure storage area for paperwork, receipts and deduction information. 

What sets TaxTank apart is its focus on real-time data, keeping individuals informed about their financial position all year round. Rather than spending hours at tax time collating documents and nervously submitting their return, the platform provides up-to-date tax summaries to save them both time and money and enable better decision-making.

Committed to building a platform that solves the real-world tax problems of everyday Australians, TaxTank surveyed over 33,200 people to find out what features mattered most to them. 

Here’s what they’ve delivered:

  • Real-time reporting with detailed, interactive tax position reports and forecasts. 
  • Live bank feeds that offer real-time tax position summaries. 
  • Secure document storage for receipts, statements and warranties (making a shoebox of faded receipts a thing of the past). 
  • Simple, smart and automated depreciation tools to maximise tax benefits without the hassle. 
  • Smart property value forecasting using CoreLogic’s industry-leading insights (perfect for property investors). 
  • Automate tax position estimates and recommendations for ways to maximise deductions.

The result? TaxTank makes it easy for individuals to claim everything they’re entitled to, while ensuring they’ve got the right records to back up their claims with the ATO. The platform even produces a comprehensive range of tax reports, including the myTax report, allowing users or their accountants to lodge their tax returns with speed and confidence. 

Solving tax time stress with smart tax tools  

For individuals, lodging their tax returns often comes with fear and uncertainty. Will they receive the sizable refund they were hoping for, or will they be hit with a large, unexpected tax bill? 

Plus, the process can take hours out of their week as individuals scramble to gather invoices, receipts and documents from the past 12 months. For many, forking out hundreds (if not thousands) of dollars on an accountant is the only way to get this process sorted. 

But with TaxTank’s smart tax tools, individuals can self-manage their tax affairs with confidence. The platform offers travel logbooks, capital gains tax calculators, home office logbooks, depreciation calculators and more to help Australians make informed decisions all year round (not just when lodging their tax return).

Harnessing live bank feeds, powered by Open Banking

TaxTank is pioneering a new way of approaching tax management, the first platform in Australia to tap into bank feeds (powered by Open Banking) gives taxpayers real-time access to their financial position. 

While live bank feeds are commonly used for business accounting software, individuals have been forced to tackle the process of gathering receipts and lodging their returns manually.

How TaxTank and Basiq work together 

By harnessing Open Banking and Basiq’s Connect and Enrich products, TaxTank harnesses live bank feeds to run its entire platform. This live, standardised and categorised data gives individuals the ability to ensure they’re claiming everything they’re eligible for as a tax deduction (lowering the chance of human error or missing valuable deductions). 

Allocating loans and overdrafts to properties also enables a real-time overview of equity, interest rates and accurate growth forecasts over time for informed decisions without the guesswork.

Here’s how it works: 

  1. TaxTank requests customer consent to access live bank feeds via Basiq’s Consent UI 
  2. Customer accepts or declines permission 
  3. If consent is given, Basiq contacts the customer’s bank
  4. Customer bank returns the requested bank data using Basiq’s Connect and Enrich products.   
  5. They are ready to roll! Every time a customer logs on their live bank feeds are automatically connected, ready for use on the TaxTank platform – until consent is withdrawn or expires.  

It’s never been more important for individuals to have a watertight record-keeping system for tax-related receipts and documents. In fact, changes to tax legislation now mean the ATO is laser-focused on preventing fraudulent activity among investment property owners. 

These recent changes mean the ATO is now able to access bank transactions related to these properties to compare them with an individual’s tax declaration). 

For individuals, gaining access to live bank feeds through TaxTank is a game-changer, giving them clear oversight of their records and financial position well ahead of tax time.

The future of smarter tax-time decision-making 

TaxTank is passionate about leveraging Open Banking to revolutionise the way individuals manage their finances. 

To date, individuals have had few options when it comes to proactively preparing for tax time. Large accounting firms have come with high price tags and have been moving away from working with individuals, instead focusing on more lucrative ongoing partnerships with businesses. 

Powered by live bank feeds, TaxTank’s software makes accounting and tax support accessible to everyone, from sole traders to individual taxpayers and even property investors. 

Individuals can allocate just 10 minutes a week to reviewing transactions and uploading receipts (rather than spending hours scrambling to gather their records at tax time). Plus, there are serious cost savings for taxpayers, in particular investors, who can score upwards of a 60% cost saving by using TaxTank to self-manage throughout the year and engaging TaxTank’s specialist team of virtual accountants to review and lodge painlessly at tax time.

With the ability to review their financials at any time, forecast potential tax scenarios and pinpoint deduction opportunities, individuals are better placed to take control of their finances (which is becoming increasingly important in today’s turbulent economic climate). 

Important Information: This article has been prepared by Basiq Pty Ltd (ABN 95 616 592 011) (Company), and was originally published on 17 August 2023 on www.basiq.io. Information is current as at the publication date, and the Company has no obligation to update or correct this article. The information contained in this article is of a general nature and is not intended to address the objectives or needs of any particular individual entity, and should not be regarded in any manner as advice. To the extent permitted by law, the Company and its related bodies corporate will not be liable for any errors, omissions, defects or misrepresentations in the information in this article or for any loss or damage suffered by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise. © 2023 Basiq Pty Ltd

Blossom is Helping Australians Grow their Savings without Costing the Earth

Posted on by Rafael Damalio
blossom-is-helping-everyday-australians-grow-their-savings-without-costing-the-earth

Investing can seem like a scene out of The Wolf of Wall Street. The stakes are high, the cash is thrown around like Monopoly money, and stock levels rise and fall like a rollercoaster. It’s loud, it’s fast and only a handful of people know the rules. 

But this boys’ club vision of investing isn’t the only option. While getting into the market used to come with a big initial investment, things are changing. New fintechs are launching and listening to what today’s investors care about. 

Research from the Responsible Investment Association Australasia (RIAA) reveals four in five Australians expect their money to be invested responsibly by super funds, banks and other financial institutions. Interestingly, 17% are already putting their money where their mouth is and investing in ethical products. 

That’s exactly what fintech Blossom is committed to delivering. Blossom helps everyday Australians access fixed-income assets to watch their savings grow while knowing they’re putting their money into companies that are doing good.  

We sat down with Blossom’s Co-Founder, Gaby Rosenberg to find out how Blossom approaches ethical investing and how they’re helping Australians reach their savings goals faster.

What is Blossom? 

Blossom is an investing app helping everyday Australians access fixed-income assets to grow their savings. 

Typically, fixed-income assets (which include corporate bonds, government bonds mortgage-backed securities, and more) have been only accessible to financial institutions, super funds, hedge funds, and high-net-worth individuals.

But, Blossom flips things on their head by allowing anyone to get started with no minimum investments, low fees and flexible withdrawals.

“Blossom democratises access to fixed income so that Aussies can grow their savings faster, easier and smarter,” explains Gaby.

Who is it for? 

Blossom is an app for everyone. Rosenberg herself says the whole point of the app is to level the playing field to help everyday Australians take control of their savings. 

Unsurprisingly, the Blossom app has already been a big hit with millennial investors, many of which care about where they’re putting their money. Interestingly, users aged 55+ are a growing cohort of users for Blossom, too. While it’s been a surprise to the team, Blossom is thrilled to be helping all Australians diversify their investments and add alternative assets to their portfolio mix. 

“I think that the female demographic is really seeing themselves in what we’re trying to build from a responsible investment perspective… that’s becoming more and more important to this demographic,” tells Gaby.

How does it work? 

Blossom makes it easy for users to get started and grow their wealth.

  • Download the Blossom app and make an account. 
  • Transfer money into the account, whether that’s as low as $1, $5 or $10. There are no sign-up, transfer or withdrawal fees.
  • Set a savings goal.
  • Blossom posts users’ earnings daily so they can track and watch their savings grow.
  • Plus, users can link up their bank account and set up auto-grow (which offers round-ups on everyday purchases as well as instant PayID transfers). 

The Blossom founder story

It was during COVID when the idea for Blossom started to form. After trying to get a handle on her own personal finances, Gaby started considering new ways to make her money work harder. 

Luckily enough, she had a bunch of finance professionals in her family who would bring a lot of innovative ideas to the dinner table.  

One week, fixed income was brought up and piqued her interest. 

“It was an extremely attractive asset class for me, but something that I hadn’t made any investments in before. I felt immediately pressed out of the market and I decided that this was likely an opportunity that would be attractive to some of my friends, and some of my colleagues. 

Then I started thinking about ways to tap into the trend of micro-investing by democratising access to new asset classes, like fixed income.”

Since launching in 2021, Blossom now boasts over 8,600+ customers and has $36 million (and counting) under management. 

How does Blossom approach ethical investing? 

Australian consumers are increasingly looking for sustainable, environmentally friendly and ethical products. In fact, 1 in 5 Millennials and Gen Xers are investing responsibly and making choices based on environmental and social issues. 

But, companies are increasingly engaging in the practice of greenwashing.

Last year Australian Competition & Consumer Commission (ACCC) launched an investigation into misrepresentative environmental claims across a bunch of business sectors and the Australian Securities and Investments Commission (ASIC) is actively monitoring the market, taking action against greenwashing. 

Gaby says responsible investing is at the heart of their brand with strict exclusion criteria around who they invest in (along with specific exclusions for industries like coal, oil, gas, child slavery, and weapons).

“Responsible investing is absolutely at the heart of our investment management philosophy and we care a lot about it at Blossom. Doing good for the world and the environment and delivering strong financial returns for investors is a moral and financial imperative for us,” explains Gaby.

It’s been a financially difficult time for many Australians with the annual inflation rate rising to 7.8% (the highest level since 1990). That means it has never been more important to build a healthy savings buffer and make our money work harder for us.

Blossom helps users grow their savings, currently offering 4.5% p.a. targeted returns. 

To date, Blossom’s tools have helped real Australians reach big milestones, from saving up a deposit for their first home to growing a ‘rainy day’ fund and even preparing to start a family, too.

“We know that saving money starts with a plan, which is why we have savings calculators and savings goals built within the functionality of the app. Users can use Blossom to really build that plan as well as track and reach those savings goals,” reveals Gaby. 

Accessing customer data via Basiq and the need for Open Banking

Gaby says Blossom has gained a lot of value from Basiq, specifically around accessing customer data to enable some of the app’s most important features. 

“We take data from Basiq and we use it to enable our auto grow feature, which basically helps our customers round up their virtual spare change. With our auto-grow feature, users have really small and easy access to diversified portfolios like the Blossom fund. It gives customers an awesome way to get on top of their financial habits, build better financial habits and start investing in small and consistent ways.

We needed to access consented customer data across multiple institutions. Open Banking through Basiq was the best way for us to access that. It actually offers us strong fraud protection, which is not something that I hear people speak to often.

It helps us put protections in place to keep our customer’s savings, their accounts, all their data and information safe from financial crime, so that was a key piece of value we gained from Basiq,” tells Gaby. 

A high level of support and a hands-on onboarding approach were big priorities for Gaby and the Blossom team, which is what attracted them to use Basiq as their Open Banking provider. 

“We’ve had nothing short of an excellent experience so far. Every interaction we’ve had with the team from the moment of signing until we finished the signup and integration was professional, helpful, and super informative. Basiq is hyper-focused on Australia… they’re building a product that’s fit for purpose for us and the Australian market.

In terms of coverage, they offer the best Aussie bank coverage for Blossom to service our customers all over Australia (inclusive of customers who are banking with smaller institutions, too).”

What’s next for Blossom

Gaby says democratising access to fixed-income assets for Australians is Blossom’s main goal, along with helping users reach their financial goals. 

The Blossom team are also working hard on a tonne of new features, including new investment offerings which will be announced later this year. Plus, they’re rolling out Blossom For Kids and working on a white-labelled partner offering called Blossom-as-a-service. 

“This will allow partners of Blossom to unplug the Blossom app and plug in their own front end so that they can white label blossom and make it look and feel as they please and distribute it to their existing audience,” shares Gaby.

Important Information: This article has been prepared by Basiq Pty Ltd (ABN 95 616 592 011) (Company), and was originally published on 31 March 2023 on www.basiq.io. Information is current as at the publication date, and the Company has no obligation to update or correct this article. The information contained in this article is of a general nature and is not intended to address the objectives or needs of any particular individual entity, and should not be regarded in any manner as advice. To the extent permitted by law, the Company and its related bodies corporate will not be liable for any errors, omissions, defects or misrepresentations in the information in this article or for any loss or damage suffered by persons who use or rely on such information (including for reasons of negligence, negligent misstatement or otherwise. © 2023 Basiq Pty Ltd