Fintech Voice, May 18, 2023

Written By Katrina Angelika

Hi FinTech,

Lots to cover in this edition of the newsletter so here are the key highlights.

CDR

Treasury confirmed at the CDR Framework Design and Strategy Forum that expansion into telecom, super and insurance sectors will be paused. A strategic assessment is planned towards the end of 2024 to inform future expansion and implementation. 

We've kicked off one of our biggest initiatives this year with the launch of CDR Month. We hope to see you at the Welcome event hosted by Frollo and the CDR Showcase event.

Finnies

We've sold out! But wait, we do have a waitlist and will be able to accommodate those first in line for the night of nights. Join waitlist now.

Other Key events

We've organised a Customer-Centric Risk Decisioning in Digital Lending webinar with Provenir.

Also check out the emerging trends in the global compliance landscape panel with Assurancelab in Sydney and Melbourne; The Technology Scale-up Awards; And the AML/KYC Onboarding & Monitoring panel at Stone & Chalk.

Plenty more updates on policy, budget and key announcements. See you on the other side.

Kind regards,

Rehan D’Almeida,

General Manager,

FinTech Australia

Policy Update

Federal Budget 2023 - Insights

The Treasurer delivered the Federal Budget last Tuesday 9 May 2023. While the primary focus of the Budget was providing cost of living relief, it also included several positives for the fintech sector:

  • Consumer Data Right (CDR) funding - The Government allocated $88.8m of fresh funding to support the operation of the CDR in banking, energy, and non-bank lending sectors, progressing the rollout of action initiation and cybersecurity uplift.

  • Support for SMEs and startups - An Industry Growth Program will be established to support Australian SMEs and startups to commercialise their ideas and grow their operations. This targeted funding will help early-stage fintechs weather difficult market conditions and continue to grow. The instant asset write-off threshold will also temporarily increase to $20,000 to help improve cash flow for small businesses

  • Investment in critical technologies - $116m will be provided to support critical technology development in Australia. This includes programs to support integrating quantum and AI technologies into the business operations of small and medium enterprises.

  • Sustainable Finance Agenda - A new Sustainable Finance Agenda aligns with a growing trend of fintechs incorporating sustainability and positive impact into their business models. Ensuring integrity in sustainability claims and developing a new sustainable finance taxonomy will make it easier for fintechs to adopt these approaches.

  • National Reconstruction Fund (NRF) - The Government will fund the establishment of the NRF - a $1.5b investment fund which will diversify and transform Australia's economy, including through targeted investments in enabling capabilities like fintech.

  • Access to talent - Measures to improve visa processing times, improve pathways to permanent residency and invest in strengthening STEM skills.

  • Cyber security, privacy, Digital ID and scams -  The Government will also allocate funding to support improvements to cyber security for small businesses, privacy protection and enforcement, Australia’s anti-money laundering framework, the next phase of the Digital ID program, and the Combating Scams initiative.

House Economics Committee - Inquiry into promoting economic dynamism, competition and business formation

Earlier this month FinTech Australia and a panel of members appeared at a public hearing for the ongoing House Economics Committee Inquiry into promoting economic dynamism, competition and business formation.

The group discussed with Committee members how with the right support and policy settings, fintech can provide the foundations needed for a dynamic digital economy and continue to be a driver of growth and productivity in Australia.

Further information on the Inquiry and the transcript from the hearing can be found on the Australian Parliament House website.

Consultation - Senate Committee Inquiry into Senator Bragg's Digital Assets Bill

FinTech Australia is seeking your feedback on the latest iteration of Senator Bragg's Digital Assets (Market Regulation) Bill 2023.

The Bill has been referred for inquiry to the Senate Economics Legislation Committee. It outlines a regulatory framework for digital asset exchanges, digital asset custody services and the issuing of stablecoins. Please note this is a private member's bill, introduced by an non-government Senator.

This new version of the Bill follows Senator Bragg's consultation last year on a draft version - FinTech Australia made a submission to this previous consultation.

FinTech Australia will be making a submission. Please contact our Policy Team if you have feedback on the draft Bill.

Submissions are due 19 May 2023.

Current consultations

 We are currently developing submissions to consultations on:

  1. Senator Bragg's Digital Asset (Market Regulation) Bill 2023;

  2. Modernising Australia's anti-money laundering and counter-terrorism financing consultation;

  3. AFCA Rules and Operational Guidelines consultation.

 We recently made submissions on:

  1. House of Representatives Standing Committee on Economics inquiry into promoting economic dynamism, competition, and business formation;

  2. Privacy Act Review Report consultation;

  3. Treasury's consultation paper on crypto token mapping;

  4. Senate Economics Committee inquiry into the CDR Bill;

  5. CDR Non-bank lending sector design paper.

  6. Strategic Plan for the Payments System Consultation Paper;

  7. APRA's proposals for PPF minimum capital requirements;

  8. National Reconstruction Fund Consultation Paper.

See our recent submissions on our website.

FinTech Australia regularly makes submissions to consultations across a wide range of policy and regulatory issues. Communications about how to get involved in these processes are distributed to our Policy Working Group membership.

If you would like to get involved, please reach out directly to our policy team.

Upcoming Events & Opportunities

Customer-Centric Risk Decisioning in Digital Lending: Insights from Australian Lenders

In this webinar from Provenir and Fintech Australia, our panel of experts will share case studies and explore strategies for enhancing borrower experience through effective risk decisioning in digital lending operations in Australia.

Compliance-Powered Growth

Compliance can block or unlock your growth - now more important than ever in these challenging market conditions. Their keynote address will highlight the emerging trends in the global compliance landscape, and the new ways companies are doing more with less to achieve their compliance goals. The panel consists of trail-blazing Australian leaders that have achieved their compliance goals using Drata and AssuranceLab.

The third annual Technology Scale-up Awards have officially launched, with award partners including Hamilton Locke, Ansarada, Findex, Source and Tank Stream Labs.

With many award categories to apply to including Fintech of the Year, applicants have the opportunity to gain industry recognition, meet and connect with companies and founders in the same growth phase, attract interest from potential investors and business partners, and gain access to exclusive industry events.

Join ComplyAdvantage and First AML as they bring to you AML/KYC Onboarding & Monitoring – Best Practices And Pitfalls For Scaling Compliance, for an afternoon of discovery and learnings as we uncover what keeps compliance professionals in Australia and across the world up at night as they fight to gate-keep the financial ecosystem safe from bad actors and financial crime.

Join Codat & Basiq in conversation about open API platforms and how combining accounting, commerce and banking data gives full visibility of a SMEs financial data. Expect engaging discussions and networking over delicious French fare and wine, at Kittyhawk, a lively, speak-easy bar which brings an old-world charm to Sydney's bustling financial district.

New Members

Let's welcome FinTech Australia's new members! 🎉

FinTech Australia's Podcast

Listen to the challenges, opportunities, and stories from our community faces across the fintech industry in Australia! 🇦🇺

Tune into our newest episode where we had the opportunity to hear the story of Judo Bank from the CEO, Joseph Healy.

Katrina Angelika
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