DayTek Capital, who are currently in the process of building a new product-disruptive digital bank, “Infinity”, is already supporting Australians and businesses during the COVID-19 coronavirus pandemic.
The unprecedented economic impacts are already beginning to hit communities and small businesses across Australia. Federal, State and even Council-based stimulus packages have been dispensed, to provide support to individuals, families and businesses, however, this has created a minefield of information of where and how to obtain that support.
Will Banks, CEO and Co-Founder of DayTek Capital, said, “Due to the number of stimulus packages across multiple websites and links, we have partnered with Increaseo, in an aim to pull together all together into a single location (www.stimuluspackage.com.au). In addition to this, we also see a need for providing information on support services, such as Food Banks, Crisis Accommodation, Mental Health services and others.”
At a time where the Australian economy faces stiff headwinds and the COVID-19 isolation measures have stifled consumer spending and business activity, the Australian banks also have their part to play in supporting those customers which are vulnerable.
“Vulnerability to the impact of the quarantine measures, can occur because of high-debt burden. Business owners fear that without the ability to secure additional financing to bolster their working capital requirements, COVID-19 could quickly become an existential challenge. But this can be mitigated, to a certain extent, if banks provide assistance by relieving significant cash flow pressures. Banks need a balance between their supply of credit to the market and their own exposures and systematic risk. This is where Infinity’s unique banking products come into their own,” Banks states.
However, banks with labour-intensive processes, branches, and legacy systems could be left vulnerable to current economic events. When asked how Infinity and other digital banks might be impacted, Banks believes,
“Digital banks are much better placed to weather this storm. As a digital business, with a robust business model and financial forecast, we are more than able to withstand economic shocks, such as this. If anything, Infinity is at an advantage in the way our unique loans and deposits will work. We are working towards building a bank which offers convenient, economically resilient, and personalised banking products to the retail and SME market across Australia. These products are now more relevant than they have ever been, and this is how we aim to support the Australian economy during this crisis.”
Several digital banks have already reported that the impact of COVID-19 is expected to have little or no impact on their operations.
“Having a digital footprint and a business online has so far resulted in the Australian digital banks being able to offer essential financial services, relatively undisrupted. However, their business model must be designed to support this.”
Infinity has continued to generate significant interest in Australia, with the Federal government offering assistance in support of the venture. Trade & Investment Queensland, the Queensland Government’s dedicated global business promotion agency, is also supporting Infinity and its potential to create skilled jobs in Queensland.