Treasurer Scott Morrison has released a new government paper on fintech, pledging to create a regulatory ‘sandbox’ for the sector that he says will enable innovation.
The paper titled Australia’s Fintech Priorities lays out the government’s plans to develop the sector, listing it fintech ‘priorities’ as crowdfunding, access to comprehensive credit reporting data and a regulatory ‘sandbox’.
The government has also committed to technology neutrality in financial regulation, as well as guidance on robo-advice (with the release of guidance from ASIC earlier this week).
“A ‘regulatory sandbox’ has the potential to encourage and support the design and delivery of new financial products and services that benefit consumers and businesses,” the paper said.
Stuart Stoyan, CEO of peer-to-peer lender MoneyPlace, said the regulatory sandbox builds on some great inroads already made by ASIC.
“It will go a long way to ensuring Australia has a friendly regulatory environment and bring us into line with international peers,” he said.
“MoneyPlace went through an [18-month] regulatory approval processes. This will fast track fintechs into the market and help accelerate growth and innovation in the industry.”
Unveiling the paper at Sydney fintech hub Stone & Chalk in Sydney this week, the Treasurer said fintech will be a “very important part of how our economy continues to transition in the future”.
“The government’s fintech program both promotes Australia as a hot house for financial services and showcases our innovative financial products and services to the world,” Mr Morrison said.
[Related: Govt launches fintech advisory group]