Target market determination
Version 1.0, 21 Oct 2021
What is a Target Market Determination?
A Target Market Determination is a required Australian regulatory document describing the types of clients for which Art Money is designed and suitable (and not suitable). This is also known as Art Money’s target market.
Art Money empowers art buyers and collectors to purchase art and manage their passion in a responsible manner by paying over time rather than upfront. Art Money’s purpose is to benefit both art buyers and art sellers (artists, galleries, auction houses and platforms) through a win-win business model, in doing so helping build a sustainable creative economy.
Why does Art Money require a Target Market Determination?
Art Money holds an Australian Credit Licence which is governed by The Australian Securities and Investments Commission (ASIC). Target Market Determination is a key part of a new regulatory framework called the Design and Distribution Obligations. These requirements apply to most consumer financial services, including Art Money. The laws fall under the Treasury Laws Amendment (Design and Distribution Obligations and Product Intervention Powers) Act 2019 from 5 October 2021 which includes an obligation to have a Target Market Determination.
About this document
This target market determination describes who would benefit from using Art Money, for whom it’s designed, and defines its key features, eligibility criteria and objectives. It is not meant to contain all terms and conditions nor financial advice.
The Australian Securities and Investments Commission (ASIC) is the regulatory body responsible for overseeing Design and Distribution Obligations for most consumer financial services. More details can be found on the ASIC website
Art Money Pty Ltd ("Art Money")
Art Money is a line of credit between $500 and $100,000 available to qualified clients/applicants for the purpose of making art purchases.
Term: each purchase is repaid over 10 monthly instalments, the first installment being the deposit (minimum 10%). Terms may be varied to approved applicants upon request.
There is no prepayment penalty.
Description of Target Market
Art Money is specifically designed for individuals who are art buyers, looking to make discretionary art purchases from Art Money partners (for example art galleries, platforms, auction houses or art fairs), and spread payment for those purchases over 10 months. Art Money is an alternative to paying in full upfront or with a credit card, which incur fees and/or interest over time.
Eligibility decisions are made using best practice fin-tech and responsible lending guidelines are at the forefront of each credit approval decision. A credit score is referenced for every applicant, making it an essential part of the approval process along with consideration of the applicant’s income and assets, expenses and outgoings.
Art Money buyers generally have above average credit scores and reliable income, using Art Money to facilitate a discretionary purchase of art in a financially responsible manner. The use of Art Money facilitates responsible budgeting and cash flow management for clients buying art.
Key Eligibility Criteria
- Individuals only
- Online application in own name. Not available for companies, partnerships, trusts, corporations, institutions.
- Australian citizen or resident, minimum 18 years old.
- Minimum annual income of $30,000 from all sources.Satisfactory credit score and/or credit history.
- Minimum 10% deposit for each purchase demonstrates commitment.
- Clear credit history (no defaults, court judgements or bankruptcies within last 5 years).
- Valid email, mobile, photo ID and residence address.
- Nominated bank account or credit/debit card for repayments.
- Pass biometric face ID verification and match to photo ID documents, 2 factor authentication (KYC requirements).
- Pass source of funds checks (AML requirements).
- Pass responsible lending checks.
Target Market Objectives
- Allow clients to purchase art more easily and responsibly by paying over time.
- Allow clients to purchase responsibly at higher price points.
- Allow better cash flow management by paying over 10 monthly payments, rather than upfront
- Qualified applicants apply for credit and request a credit limit of their choosing.
- Applicants may be approved for the limit they have requested or a lower amount.
- Credit is revolving, subject to timely repayments.
- Credit is available for purchases from $500 to $100,000. Credit over $100,000 may be made available to approved applicants upon request.
- Art buyers make 10 monthly payments.
- The first payment is a (minimum) 10% deposit.
- Terms may be varied to approved applicants upon request.
Account Review Triggers/ Monitoring
- Accounts are monitored monthly.
- No automatic late fees are applied.
- Clients are contacted to discuss a payment plan before being charged late fees.
- Flexible payment arrangements for clients who fall into difficulty are offered.
Security, Anti-money laundering (AML) & Know your customer (KYC)
- Clients are verified for identity using credit bureau and national databases.
- Clients are verified using biometric face ID matching to photo ID documents and two factor authentication.
- Anti-money laundering checks (including PEP (politically exposed persons) & Sanctions) are embedded processes.
- Secure cloud based data storage and industry standard defence in depth practices including encryption and access controls are utilized.
Art Money Credit [service/product]
- 10 payments. 10 months. No interest.
- No APR, no account keeping fees, no annual fee, no early repayment fee.
- No fee for direct debit payments. Debit/credit card payments incur a 2% fee.
- Purchases from Art Money partners (including galleries, platforms and art fairs).
Art Money Buyer's Premium [service/product]
- 10 payments. 10 months. Fixed monthly fee applies.
- No account keeping fees, no annual fee, no early repayment fee.
- Repayment by direct debit.
- Purchases from any art seller.
Art Money key features and eligibility criteria are consistent with the Target Market goals to allow qualified buyers to responsibly purchase artworks after detailed consideration of each client’s personal financial situation and credit history.
Art Money is unsuitable for clients who do not meet the key eligibility criteria, particularly around minimum income and credit score/history, or do not have the financial capability to make regular monthly repayments.
Art Money Buyer’s Premium [service/product] may not be suitable for buyers who do not have the financial capability to pay an additional monthly fee.