ASIC, AUSTRAC and banks urged to engage with regtech start-ups amid controversy
A batch of start-ups will engage with banks and regulators about creating a “compliance-by-design” culture in financial services later this week at an inaugural RegTech Association event and are hoping conversation will soon turn to action. The expected release on Tuesday morning by the Australian Prudential Regulation Authority of a report into governance problems at Commonwealth Bank, and the interim profit results this week of the other major banks which are under pressure for failing to verify whether customers can repay loans, will illustrate the value of the nascent regtech sector. But while the big banks love to talk about innovation, they find it very difficult to achieve in practice. […]
Checkbox blazes award winning regtech trail
Evan Wong, 24, is one of a new breed of technology entrepreneurs who are seizing upon opportunities in the emerging “RegTech” sector. Mr Wong is the CEO and, together with colleagues Paul Wenck and James Han, is a co-founder of fintech startup Checkbox which is based at the Tank Stream Labs accelerator at the new Sydney Startup Hub. Checkbox has developed a technology platform that uses artificial intelligence and a ‘drag and drop’ interface allowing regulatory experts – like lawyers, accountants and analysts – to easily translate regulation into software without needing to write code. The ‘platform-as-a-service’ cloud solution also offers auditing, reporting and analytics features. In one case study, […]
‘Laggard’ lenders to be left behind: Moody’s
Banks that fail to digitally transform are at risk of losing their competitive edge to the rising number of online players entering the market, according to Moody’s. In its Fintech – Global: Bank of the Future report, Moody’s warned that banks that fail to adopt strategies that strengthen their digital platforms may struggle to maintain their current market position as customers increasingly explore finance alternatives from online lending platforms. The report cited data from an analysis of the US mortgage market which revealed that 53 per cent of borrowers used online platforms to obtain home loans in 2017. The figures also revealed that younger borrowers are most likely to obtain […]
RBA not suitable to regulate new payments technologies
The government is being urged to follow in the UK’s footsteps and create a new regulatory body for the payments industry that can regulate new forms of payments being made via blockchain and cryptocurrencies. A white paper commissioned by lobby group the Australian Taxpayers’ Alliance and conducted by researchers from RMIT University found that existing bodies such as the Reserve Bank were not suited to regulating the rapidly changing digital payments sector, because it wasn’t flexible enough. Co-author of the report RMIT senior research fellow Christopher Berg told The Australian Financial Review having payments policy and monetary policy in one institution would not be workable with the introduction of cryptocurrencies. […]
ASIC looking to regulate overseas ICOs under Australian laws
Australian regulations may apply to ICOs, even when created and offered overseas, warns commissioner. ASIC will be eyeing initial coin offerings (ICOs) as it moves to update its guidelines for companies raising funds by issuing digital currencies or tokens. Specifically, it warns that Australian laws may apply to ICOs even when they’re created and offered from overseas. “We will highlight that Australian corporate and consumer law might apply – even if the ICO is created and offered from overseas,” said ASIC Commissioner John Price at a Sydney fintech event. “This is an important point given the international nature of this sector. I think you can expect a strong focus from […]
ASX details timeline, features for new blockchain-inspired system
ASX Limited, the operator of the Australian Securities Exchange, has released new details of the system inspired by Bitcoin’s blockchain technology that will replace CHESS: The ASX’s Clearing House Electronic Subregister System. CHESS provides clearing, settlement and other post-trade services for the exchange. ASX in early 2016 revealed that it had acquired a stake in New York-headquartered Digital Asset Holdings, which develops blockchain-inspired distributed ledger technology (DLT). The intention was to explore whether a DLT-based system could potentially replace CHESS, which was originally rolled out in 1994. Although the exchange operator has emphasised that CHESS is stable and continues to function effectively, ASX says that replacing it with a blockchain-style […]
Fintech predicts consumer behaviour change from Royal Commission
Sydney fintech company CashDeck is predicting that the Royal Commission will create a permanent shift in consumer behaviour and have redirected their strategy and development resources to assist firms deal with the change. The company has developed Credit Ready, the financial equivalent of a Fitbit Fitness Tracker to help users stay on top of their finances. Owen Joyce, Chief Commercial Officer at CashDeck, suggests that the Royal Commission will result in a more financially literate consumer. “The sector isn’t waiting for the end of the commission, change is happening already. Look at how quickly the banks responded to the Living Expenses spotlight” he said, referring to the updating of policies […]
Blockchain poised to revolutionise the financial services industry
It’s tempting to dismiss blockchains and the cryptocurrencies they support as a techno fad that will fade as quickly as it appeared. However, there are growing signs the technology is poised to shake the financial services sector to its core. At its heart, a blockchain is a digital ledger in which transactions between parties are recorded chronologically and publicly. Based on blockchains, cryptocurrencies are digital currencies in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, independently of any banks. Its role in the financial sector While awareness of blockchains and cryptocurrencies is already very high in the financial services […]
