Fintech
Airwallex Granted License to Offer Retail Investment Products in Australia
Aereiwallexa financial platform for businesses, has been granted the Australian Financial Services License (AFSL) by Australian Securities and Investments Commission (ASIC) to offer retail investment products.
This license is in addition to the AFSL that Airwallex has held for its payment and currency exchange activities since 2016.
The new authorisation marks Airwallex’s entry into the investment products market and reflects its aim to become a full-service financial services platform. The announcement comes eight months after Airwallex launched Airwallex Yield to wholesale clients, allowing them to earn yield on their AUD and USD balances without opening an overseas bank account, a first in Australia.
With the expansion, Airwallex Yield will be available for wider retail marketwith a lower minimum investment requirement of AUD$10,000 (or USD equivalent).
The expanded offering allows customers to:
- Invest a minimum amount of AUD$10,000 (or USD equivalent).
- Access funds that have historically returned more than triple the interest rates of savings accounts at the big four banks, currently offering a daily yield of 3.67% for AUD balances and 3.95% for USD balances.
- Move funds between your Cash Wallet balances and Yield Account without lock-in periods, unlike traditional term deposits.
Airwallex Yield invests through a fund managed by JP Morgan Wealth Management, whose underlying funds boast high ratings from the main rating agencies.
“We are excited to expand Yield to position Airwallex as the modern alternative to banks for businesses of all sizes,” said Author: Shannon Scott, SVP of product at Airwallex. “This move into investment products underscores our role as a comprehensive financial services platform that can help businesses manage their finances more efficiently.
“It is particularly timely as Australian SMEs face economic challenges and rising costs. Yield empowers them with its flexibility, attractive rates of return and multi-currency capabilities, a solution that businesses have wanted for years.”
Also commenting on the news, George Boubouras, CEO, Research, Investment and Consulting at K2 Wealth Management Ltd (an Airwallex partner and issuer of the Yield product), said: “Cross-border trading firms can benefit from exposure to money market funds which are currently taking advantage of the higher yields on offer thanks to the higher federal funds cash rate in the US and, domestically, the higher cash rate set by the RBA.
“The benefits of a single, combined multi-currency cash account that offers exposure to multiple currencies in a single account can help with lower transaction costs and shorter settlement times compared to traditional currency accounts that offer lower returns and are more expensive.”