FinTech Voice, October 13, 2022

Dear Community,

De-banking continues to be a significant issue which undermines the entire fintech industry. The policy responses to de-banking recommended by Council of Financial Regulators are a welcome first step but we will continue to advocate for stronger measures, such as due diligence or external dispute resolution schemes which holds banks accountable and provides an avenue for appeal.

We look forward to having action initiation enabled in CDR for the fintech industry to create groundbreaking solutions that will empower consumers (and potentially businesses) in the digital economy. We are currently working with members to draft two of these submissions. Read the policy section for more information.

Intersekt Fintech Festival was the most successful local stage we have created to promote the fintech industry. In the global arena, Singapore Fintech Festival is one of those must-attend conferences. If you haven’t booked yet, get exclusive discounts here.

Don’t miss the other upcoming events in the coming weeks including our meetup with panels on mitigating risk in the digital era on October 26.

Our corporate partner ProbeCX has also drafted this article on how an outsourced model can help alleviate some of the issues the industry is currently facing.

For any queries and support, please reach out to us.

Regards,

Rehan D’Almeida,
General Manager,
FinTech Australia

CDR Statutory Review Final Report released

The Government has released the final report of the independent Statutory Review of the Consumer Data Right by Ms Elizabeth Kelly PSM.

The report made 15 findings and 16 recommendations reflecting on implementation to date and suggesting future improvements.

Notably, the report recommends:

  1. Ensuring privacy is properly factored into the designation design;
  2. Undertaking a whole of ecosystem cyber security assessment to ensure CDR cyber security architecture continues to be fit for purpose;
  3. Giving ADRs greater flexibility to choose who they undertake preliminary systems testing with;
  4. Phasing out screen scraping in sectors where the CDR is a viable alternative;
  5. Greater transparency on CDR consultation processes and clearer timelines for future developments;
  6. Increasing small business and government participation;
  7. Encouraging and incentivising the development of use cases through initiatives similar to the UK’s Open Up Challenge; and
  8. Supporting consumer advocacy groups to meaningfully participate.

Improving data quality and coordination between regulators were also highlighted as essential to the CDR realising its potential.


Government releases CFR de-banking policy paper

The Government has also released the Council of Financial Regulators’ (CFR) report on Potential Policy Responses to De-banking in Australia.

The report makes four recommendations for the Government’s consideration:

  1. Collect de-banking data;
  2. Introduce transparency and fairness measures – i.e. that banks document and provide reasons for de-banking, provide access to dispute resolution and provide a minimum notice period;
  3. Advise the major banks of the Government’s expectation that they provide guidance on their risk tolerance and requirements to affected sectors;
  4. Consider funding capability uplift within affected sectors.

These policy responses are a good first step and the improvements to data collection, guidance and transparency will begin to illustrate the vast scale of the de-banking problem and provide some certainty. However, it is disappointing the CFR has not recommended stronger measures, like external dispute resolution or due diligence schemes, which we have previously advocated for.

The proposed transparency and fairness measures are a positive step but must be implemented in a mandatory and enforceable way to be effective. We will continue to advocate that these measures should be coupled with an external dispute resolution scheme which holds banks accountable and provides an avenue for appeal.

We look forward to the Government’s response and will call for implementation to progress as a priority.


Consultation on ASIC Industry Funding Model

Treasury has released a discussion paper for the ASIC Industry Funding Model (IFM) Review.
The IFM was introduced in 2017 as a way for ASIC to recover its regulatory costs from regulated entities. The IFM determines which costs incurred by ASIC through regulation and enforcement are recovered from which regulated sub‑sectors. The model is intended to ensure that costs are met by entities in the sub‑sectors that create the need for regulation.
The IFM review is particularly relevant for FinTech Australia members because it specifically raises the potential for cost recovery from emerging sectors and legal unlicensed conduct. The discussion paper asks for alternative ways to recover costs for ASIC’s activity in relation to sub-sectors like crypto assets and BNPL. This is because these sub-sectors do not currently sit within the existing system of licensing, registration, and supervision.
Treasury is seeking feedback by 28 October.

CDR goes live for energy sector

From 1 October 2022, product reference data for energy plans became available with the Australian Energy Regulator and the Victorian Department of Environment, Land, Water, and Planning joining as energy sector data holders.

Consumer data-sharing by energy retailers, including consumer billing and consumption data, will be phased in from 15 November 2022.


Current consultations

We are currently developing submissions to consultations on:

– Treasury’s draft legislation to enable CDR action initiation;

– Treasury’s draft enhancements to the CDR Rules;

– APRA’s draft prudential standard CPS 230 (Operational Risk Management);

– ASIC Industry Funding Model Discussion Paper.

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.


 

💭Think & Grow are working on the most in-demand nationwide research project – the fourth iteration of the Australian Startup Salary Guide 2022/2023. Click here to participate in the survey.

📣The Stone & Chalk Group is extending exclusive offers to valued members of Fintech Australia. If you are a tech startup or a scaleup, visit their website for more information.

💁🏻Lift Women are funding women and girls who are passionate about their business dreams, want to make a difference and be a CHANGEMAKER! The Female Founder Grant Challenge 2022 is NOW OPEN. You can win 1 of 3 business funding grants, valued at over $15,000 EACH. To apply, simply start a project on Lift Women to be part of the challenge. Or book your free consultation call.

📒Trade Ledger on their next generation working capital – the $ multi-trillion opportunity. A great guide to driving success. Visit here and see the structured approach to any lender to identify where the biggest opportunities lie in their working capital.

💁🏻‍♀️She Loves Tech Australia 2022 the world’s largest competition for women and technology. Winners can expect up tp $100,000 direct investments from She Loves and $15,000 cash prize from Teja Ventures and $10,000 cash prize from ADB Ventures. Visit here.


 

📉Fintech Australia Series Mitigating Risk in the Digital Era an in-person meet up which covers everything from mitigating risks and securing digital platforms especially in the era of data breaches, online security and digital fraud. October 26, 5:30 pm – 8:30 pm. Visit here.

📉START SMART: Avoiding Common Startup Mistakes Join BDO’s in-person session in Sydney as they cover ESOPs, tax incentives and capital raising. 18 OctoberRegister here.

🔍 AusIndustry is hosting a a free information session to learn more about the Research and Development Tax Incentive (R&DTI). This hour long session will introduce you to the R&DTI and guide you through key eligibility requirements. Oct-Nov 2022. For more info, click here

🇸🇬 Singapore FinTech Festival (SFF) 2022 Singapore welcomes you in-person to the 7th edition of the Singapore FinTech Festival (SFF). Brings together the global FinTech community. 2-4, Nov, Singapore EXPO. FinTech Australia members enjoy 20% off conference passes (applicable to existing pass rates). Register now: https://bit.ly/3KfqNEr

💰How Fintechs can guide consumers toward financial wellness. Join the webinar hosted by Envestnet Yodlee on October 10, 2022, 6:00 pm – 7:00 pm. Register here.

🔍EY FinTech Australia Census 2022 Save The Date is hosting a special webcast to hear the outcomes of the EY FinTech Australia Census 2022, Nov 2, 10:00 am – 11:00 pm. More details to follow.


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

Superhero a leading share trading and superannuation platform has released new insights into the investment habits and preferences of Australians, only one in ten Superhero trust finfluencers.

Cache has produced its 2nd Annual Micro-investing Report, detailing key industry insights, distinct product features & functions and new entrants in the market.

Revolut launches Crypto ‘Learn & Earn’ courses to help customers improve their knowledge of cryptocurrencies.

Weel is on the hunt for Australia’s top finance leaders for their first ever Australian-CFO Awards 2022, after identifying a gap in the sector.

CreditorWatch has secured a three-year contract with Coface, a global specialist in trade credit insurance, to support its global insurance unwriting business that has a presence in more than 100 countries.

Using Yondr introduces a smartphone app which can help you manage the effects of inflation and helps improve your financial position.

Trade Ledger has set out a new report; 4-step value framework, a great guide to driving success.

Envestnet® | Yodlee® has appointed data and analytics expert Dr. John Harrison, to the newly created role of Head of Open Banking for Australia and New Zealand.

Tanggram and co-founder Erica Xie had been named as a Finalist in the Women in Finance awards for Women’s Community Program of the Year and Young Leader of the Year.

Taulia and Standard Chartered have signed a memorandum (MoU) to collaborate across a range of working capital finance solutions, with an initial focus on the provision of supply chain finance and dynamic discounting.



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