Open banking framework to drive customer choice and innovation across Australia
Australia’s fintech industry has welcomed an Australian Government decision to put the customer first by pushing back against big bank delaying tactics and introducing open banking reforms from mid-next year. “A government-backed open banking framework will be a game-changer for consumers and businesses, along with drive a new wave of fintech innovation and growth in Australia,” said FinTech Australia chair Stuart Stoyan. “Finally, customers will be able to use a regulated system to unlock the power of their own data to get access to financial services better tailored to their needs.” “This reform is expected to force downward pressure on lending costs, allow people to more easily manage their budget and […]
Budget delivers $138m to fintech sector
The 2018 federal budget has set aside $138 million for open banking, digital identity programs, blockchain applications and the fintech sector. The government has unveiled its 2018-19 federal budget, which revealed plans to support an open banking framework; the acceleration of the GovPass program; exploring the use of blockchain for government; and the promotion of the industry. The government will pledge $44.6 million across four years from 2018-19 for the creation of a “national consumer data right”. The CDR will help “consumers and small to medium enterprises to access and transfer their data between service providers in designated sectors,” the budget papers said. Over four years, the $44.6 million – […]
Morrison sharpens blockchain, AI agenda
Australia’s open banking, blockchain and emerging fintech sector received a funding boost in last night’s Budget, a move the Treasurer said will increase competition and create new jobs. Treasurer Scott Morrison said the funding boost will build on its Financial Technology Innovation initiatives first introduced in last year’s Budget. In his Budget speech, Morrison said the Government is “moving forward with our Open Banking Regime and Consumer Data Right, giving small businesses and households more control, more choice and better deals.” The Government will pour $45 million over four years to develop the Consumer Data Right, enabling consumers to share and use their data in a safer way. Data-driven competition […]
DTA to explore blockchain for government payments
The government has ringfenced $700,000 of the Digital Transformation Agency (DTA) budget to explore the use of blockchain for ‘government payments’. The DTA – formerly known as the Digital Transformation Office – will “investigate areas where blockchain technology could offer the most value for Government services” the Treasury stated in its Budget papers. “The cost of this measure will be met from within the existing resources of the Digital Transformation Agency,” Budget documents say. Last year, CSIRO’s Data61 group released two reports on blockchain and distributed ledger technologies. “Blockchains transactions can support services for payments, escrow, notarisation, voting, registration, and process coordination. These are key in the operation of government […]
Fintech threatens credit unions: Moody’s
Moody’s says new digital banks such as Volt, which received an Australian-first banking licence this week, will threaten credit unions and building societies. Credit unions and building societies’ lack of tech leadership means they are under threat from a new wave of digital banks, according to ratings agency Moody’s. Volt, co-founded by a former chief executive of mortgages at UK giant Barclays, this week became the first fintech granted a banking licence – allowing it to raise deposits up to a maximum $2 million. Moody’s Investors Service vice president Frank Mirenzi on Tuesday said the big four banks – ANZ, Commonwealth Bank, National Australia Bank and Westpac – were already […]
Fintech apps invited to play in the sandbox
Australia’s fintech and regtech industries have received a major boost, with the country’s first-ever ‘sandbox’ facility opened in Sydney’s northwest. Australian start-up ID Exchange and UK firm digi.me have combined to convert a heritage-listed house in Glenwood into a cutting-edge, 22-desk ‘Innovation Campus’, that will house developers and early-stage entrepreneurs. To be known as the ID Exchange Innovation Campus (IDX), the facility will focus on application development for the regtech and fintech sectors. Founder and Managing Director of ID Exchange, Joanne Cooper, said the initiative would help create open data solutions for everyday Australians. “This partnership will immediately advance the development of secure, ethical, compliant and society-focused open data solutions […]
2018-19 Budget steady for Australian fintech – but the big news is yet to come
Australia’s fintech industry will benefit from a number of important support measures in last night’s 2018-19 Australian Budget but will be forced to wait for the big news about the details of Australia’s open banking framework. FinTech Australia chair Stuart Stoyan said he welcomed a number of funding measures outlined in the budget. These included: $44.6 million over four years from 2018-19 to help Australian consumers to more easily access and use their own data, with the banking sector to be the first Australian industry sector to be subject to this consumer right. $700,000 in 2018-19 for the Digital Transformation Agency to investigate areas where blockchain technology could ‘offer the […]
APRA grants first local digital licence to volt bank
The prudential regulator has signed off on Australia’s first-ever digital bank under a restricted licensing regime that aims to bolster industry competition. The Australian Financial Review revealed that Sydney-based volt bank had been granted a licence by the Australian Prudential Regulation Authority early on Monday. APRA later confirmed that volt bank was authorised as a restricted authorised deposit-taking institution (RADI), while non-operating holding company volt Corporation Limited was also approved under the Banking Act 1959. Volt bank is led by former Barclays and National Australia Bank executive Steve Weston which he co-founded with former colleague Luke Bunbury. To date, volt has raised $15.7 million in equity capital via three funding […]
