Australian start-ups welcome a senate inquiry into the fintech space
The Australian senate has launched an inquiry into fintech and regulatory spaces to assess whether the country is competitive enough in the technology sector over a year-long review.
Fintech start-ups in Australia have previously argued that politicians have done far too little when it comes to enabling companies which challenge big, traditional banks.
New South Wales senator, Andrew Bragg, secured the senate committee inquiry, prompting FinTech Australia general manager, Rebecca Schot-Guppy, to call the inquiry’s global focus ‘positive’.
However, Schot-Guppy feels that the lack of education throughout Australia when it comes to the capabilities of fintech is still a blaring issue, one that needs to be addressed first.
“Government could play a role in helping first validate and then promoting these services to consumers,” says Schot-Guppy. “Trust is hard to earn in financial services.”
Australian start-ups feel it’s time their government came up with a comprehensive strategy for regtech and fintech, as well as expanding their regulatory sandbox program for early-stage fintechs which will help breed fresh competition.
Technology start-up archTIS, based in Australian Capital Territory, saw its chief executive of information security, Daniel Lai, speak out on the topic. “The current procurement policy process of federal government does not promote innovation or assist Australian start-ups which are still heavily biased against American multinationals,” says Lai. “Innovation is more than open plan offices and bean bags.”
New South Wales online business lender Lumi agrees. Its chief executive, Yanir Yakutiel, points to Israel as a perfect example of government supporting fintechs to prosper. “I think it’s extremely, extremely uncompetitive at this stage now in Australia,” says Yakutiel.
