OFX's UK e-money licence shows up relatively sluggish Aussie fintech laws

ASX-listed online foreign exchange provider OFX will issue a trading update alongside its annual general meeting on Tuesday, and it is part of its aspirations to be a fintech player of global scale.

A central element to this vision is the ability to expand its range of payment services.

And so its announcement last week that it has acquired an “e-money licence” from the Financial Conduct Authority, the UK regulator, was significant for OFX (formerly known as OzForex). It also reveals how progressive UK regulators are about encouraging fintech innovation in the payments system.

Ride sharing company Uber applied for an e-payments licence in the Netherlands in March. The regime allows technology firms to offer comprehensive payments services without being considered banks.

As the speech by Treasurer Scott Morrison and Productivity Commission report into competition in the financial system on Friday showed, Australia needs to rethink the way it regulates if it is going to create an environment for fintech players to thrive locally, and compete globally.

The Australian Financial Review Innovation Summit last week heard how the global payments landscape is moving at lightning speed. OFX, which has been around for 20 years and listed on the exchange in 2013, has been adapting.

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Source: OFX’s UK e-money licence shows up relatively sluggish Aussie fintech laws | afr.com