Following this announcement, the Australian Financial Services Licence for retail investment products was delivered by the Australian Securities and Investment Commission (ASIC), enabling Airwallex to meet the growing demand from Australian SMEs that seek alternatives from traditional banks. This process is expected to maximise savings during the economic downturn.
In addition, the company will continue to focus on meeting the needs and preferences of customers and clients in an ever-evolving market, while also prioritising the process of remaining compliant with the regulatory requirements and laws of the industry.
The autorisation from the regulator is set to formalise Airwallex’s move and overall development into investment products, while also signaling the firm’s evolution toward becoming an end-to-end financial solution platform. In addition, Airwallex Yield has also been expanded to retail customers, with its minimum investment threshold being lowered to approximately USD 6.700 (AUD 10.000), allowing users to earn returns on their AUD and USD balances without having to open a foreign bank account.
With this expansion, Airwallex Yield will allow clients and customers to invest with a minimum investment amount of USD 6.700, avoid lock-up periods, and easily move funds between their cash wallet balances and their Yield account, as well as invest funds that have returned more than triple with the interest rates of saver accounts of the big four banks. At the same time, with Airwallex Yield users will have the possibility to access a service that invests through a fund managed provided by J.P. Morgan Asset Management (J.P. Morgan).
Airwallex Yield was developed in order to return more closely track the RBA cash rate than the rates on offer from traditional providers, which represents a priority in this current high inflation environment. Yield’s underlying fund, the J.P. Morgan Liquidity Fund, provides a daily 3.67% return on AUD balances, as well as a 3.95% return on USD balances. At the same time, businesses that leverage the solution could earn more than triple the amount of a savings account with a big four bank by investing with Yield.
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