APRA commits to fintech
Following the establishment of a Senate committee to inquire and report on the fintech and regtech sectors within Australia, APRA has formally “recognise[d] the important contribution” both lend to the financial system and explained the ways in which it will support their development.
The committee accepted submissions from interested parties in 2019, and has scheduled the final report to be released on or before the first sitting day in October this year.
APRA’s submission acknowledged that actively supporting innovation is crucial to achieve an “efficient, competitive and stable financial system”. According to the regulator, fintech and regtech unlock potential not only for new entrants, but existing financial institutions as well. The subsequent increase in efficiency and competition seem sure to lead to better outcomes for both consumers and the community.
As such, APRA has committed to “both a direct and a supporting role” in furthering the two sectors, including:
- Striving to understand opportunities and risks they bring to the system
- Adapting to maintain sustainable, open and technology-neutral policies
- Granting fintech and regtech companies licenses for opportunities and innovations they’re seeking, while ensuring risks are managed
- Collecting and publishing data from the financial sector in a transparent way
- Communicating with other regulators, such as ASIC and the ACCC, to coordinate across agencies
- Acknowledging the potential benefit these efforts bring to APRA’s own operations, such as shifting to “data-enabled decision-making”
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Source: APRA commits to fintech