FinTech Voice, November 30, 2023

Hi Community,

A few big highlights from the last two weeks

1. The EY FinTech Australia Census released today confirmed some of our biggest concerns. Read the full report here. Please reach out if you have any suggestions, thoughts or concerns

2. We had our AGM last week and welcome our newly elected Directors! - Sarah Gorman, Kellie Morton and Vinnie D'Alessandro

3. 'Tis the season - for consultations and submissions. Policy updates below with more expected to drop soon.

Kind regards,

Rehan D’Almeida,

General Manager,

FinTech Australia

Policy Update

ASIC announces 2024 enforcement priorities

ASIC has announced its enforcement priorities for 2024; adding two new priorities in relation to the superannuation industry and misconduct in the used car finance sector. Notably, enforcement action in relation to the crypto sector has been removed from the list of priorities.

The list retains existing priorities in relation to greenwashing, enforcing design and distribution obligations, and focus on governance and directors' duties failures.

CDR Action initiation legislation to progress

The Bill containing amendments to implement the framework for Consumer Data Right action initiation has been listed for debate in the Senate this week, following adjournment of debate since March and a Senate committee inquiry.

BNPL consultation delayed until new year

The AFR reports that draft legislation for buy now, pay later providers, originally expected to be consulted on by the end of this year, will be delayed due to resourcing pressures on the government’s legislative drafting teams. We look forward to engaging on this consultation process in the new year.

Consultation on initial financial advice reforms

The Government is consulting on the first tranche of exposure draft legislation in response to the Quality Advice Review's recommendations. These amendments relate to advice provided by superannuation trustees, conflicted remuneration provisions and streamlining how financial services guides/disclosure requirements can be met when providing personal advice.

FinTech Australia does not propose making a submission on this tranche of reforms but will monitor the Government's expected announcement this year on its final position on the outstanding recommendations.

Banks Agree to Scam Safe Accord

The two Australian banking peak bodies, the Australian Banking Association (ABA) and the Customer Owned Banking Association (COBA), have announced a 'Scam Safe Accord' which outlines six priority initiatives to combat scams for banks. These initiatives include to: 

1. Deliver an industry-wide confirmation of payee solution to customers;

2. Take action to prevent misuse of bank accounts via identity fraud;

3. Introduce warnings and payment delays to protect customers;

4. Invest in a major expansion of intelligence sharing across the sector (i.e. AFCX);

5. Limit payments to high-risk channels to protect customers;

6. Implement an Anti-Scams Strategy.

Increasing the threshold for the application of the Financial Stability Standards for Securities Settlement Facilities

The RBA has opened consultation on increasing the 'activity threshold' for the exemption for small securities and settlement facility licensees from the Financial Stability Standards. The proposal would increase the threshold value from $200 million to $40 billion. The cohort with the newly proposed threshold will only represent 1% of annual settlement activity for Australian equity securities and less than 1% of annual settlement activity for debt securities.

FinTech Australia visits Canberra

Our Head of Policy, Nick Kavass, traveled to Canberra this week to meet with parliamentarians who are part of the Parliamentary Friends of FinTech and the Digital Economy. Stay tuned for an event for members early next year in Canberra.

We are currently working on the submission to:

1. Regulating Digital Asset Platforms - Proposals Paper

We recently made submissions on:

1. Reforms to the Payment Systems (Regulation) Act 1998 – Exposure draft legislation consultation

2. Screen Scraping - Policy and Regulatory Implications 

3. CDR rules - Expansion to the non-bank lending sector

4. CDR Consent Review and operational enhancements design papers

5. ACCC Data Brokers Issues paper;

6. Supporting Responsible AI: Discussion Paper;

7. Licensing of payment service providers - payment functions;

8. Reforms to the Payment Systems (Regulation) Act 1998;

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

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

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.

Upcoming Events

 Don't miss out on these exciting events from our members and partners!  ✨

1. 1835i Female Leaders Community Breakfast— Join 1835i for an empowering morning to shine a light on what it takes to succeed as a female in startup world

2. CONNECT. INSPIRE. EMPOWER. — Hosted by LIFTwomen Group and AIA Australia, this event provides a platform for influential women leaders and allies to share insights, discuss challenges, and celebrate successes.

3. Unpacked: The Latest Payment Insights from around the Globe— an event by Zepto. UNPACKED presenters will take us to international markets and share their window seat views of global payment trends and developments.

4. Finopitch 2024 — Formerly known as FIBC, more than 200 startups from Japan and overseas have participated the contest so far since the days of ” FIBC”. Entry is now open and will be closed 31st December 2023.

Find more events here.

Also, mark your calendars for FinTech Australia's 2024 Flagship Events 🚩 and reach out to the team if you would like to support any of these initiatives.

Community Updates

Don’t miss all the news and insights from our members and corporate partners from our newsroom.

• Tic:Toc doubles down on platform technology, announces rebrand to Tiimely. Read More.

• What it takes for businesses to compete in the digital economy. Read More.

• Monoova launches real-time payments in Australia for world's first universal payments platform, Optty. Read More.

• Lendela secures AUD 7.8M Series A round to level the playing field for Australian Borrowers. Read More.

• Touch2Pay Secures $3.2M in Pre-Series A2 Funding, Total Capital Reaches 6.3M. Read More.

• Pathways to access PayTo as an Initiating Business or Payment Initator. Read More.

• Don't Let Your Personal Details and Data Fall into the Hands of an Impersonator. Read More.

• Cleared for takeoff: Bonza selects Monoova to become first airline to launch PayTo, as POLi is grounded. Read More.

• WLTH secures $14M raise, acquires Mortgage Mart via new strategic alliance to become Australia's top digital lender. Read More.

• Swyftx and TRM Labs launch world-first scam trial to protect Aussie crypto users. Read More.

• We recently had a webinar with OneSpan to discuss current business challenges around digital agreements and e-signatures, risks of future technologies like quantum computers and how to build trust and confidence with blockchain 🚨 If you missed it, watch the recording here. 

Find more news here.

FinTech Australia's Podcast

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

In our most recent Business Spotlight episode, we had the chance to dive deep in a discussion with Jeroen van Son, CEO & Managing Director at Verrency, on the history of the business, journey, and how they are providing solutions for financial institutions.