Senator, The Hon. Jane Hume has announced new laws have been passed to drive fintech innovation and competition in the financial sector with the creation of a fintech regulatory sandbox.
The sandbox allows fintechs to test new products and services for 24 months without obtaining a financial services licence or a credit licence from the Australian Securities and Investments Commission (ASIC). It will provide a safe environment to help fintechs create a minimum viable product to take to market – to work out if their products and services are robust and have value for consumers.
By removing barriers to entry for new fintechs, the regulatory sandbox will enable greater competition in the financial system, which is critical in ensuring that both consumers and businesses get value for money from the financial products and services they use.
More information here. https://ministers.treasury.gov.au/ministers/jane-hume-2019/media-releases/new-laws-passed-drive-fintech-innovation-and-competition
Happy new year everyone. If you are still on leave, enjoy your last days. If you are impacted by the terrible Australian bush fires, we are thinking of you and your families – stay safe. If you are back at your desk, welcome back.
As we start our 2020 journey, I wanted to do a recap of 2019 but also use this as an opportunity to point forward to some key themes.
Recently, we released our first RegTech Industry Report: The Founders’ Perspective, that coincided with the call for submissions from the Australian Federal Government through their Senate Select Committee for RegTech and FinTech. You can view the RTA Senate Select submission here.
The coalescence of these initiatives could not have happened at a better time.
This is a golden age for the RegTech opportunity. There’s unprecedented focus on RegTech, the fines for regulatory non-compliance are growing and there’s prediction that globally the industry will spend in excess of $127 billion by 2024.
In summary, there will be focus by us on various critical key areas and over the next few months we will releasing a series of videos and podcasts that discuss these:
At the end of last year, RTA member Ascent RegTech summarised the last 12 months very well in their blog post. In particular, their points that RegTech has crossed the chasm and that regulators went on the record about RegTech. The ‘if not (RegTech), why not’ message is loud and clear. ASIC succinctly wrapped up their current RegTech Symposium series with a report that can be downloaded here.
The RTA are working hard to assist in achieving these outcomes and are working with Government and the Regulators through our various committees, round tables and co-designed events to ensure that key messages are delivered, collaboration remains high and outcomes are produced. We need to speed up the process to generate commercial outcomes sooner, rather than later. An impressive 91% of our members achieved full production over the last 12 months, but we still have work to do in smoothing the procurement path to get to faster adoption.
Another RTA Member, Encompass’s Alex Ford reflected in her response to our Research report, outlining the growing importance of Artificial Intelligence and that it elevates humans to higher order operations and risk management to gain more effective and productive outcomes.
“Digital technologies, including intelligent process automation and artificial intelligence, are proven as more effective at analysing data than humans. Delegating this work to digital technologies frees KYC analysts to focus on judging intricacies of complex situations, making high quality and informed decisions, and taking actions which protect their institutions and the wider Australian economy against the corrosive impacts of financial crime. Banks, government and other regulated entities need to be prepared to make the investment.”
My parting remark here is this significant and often overlooked fact: RegTech is sector agnostic. All regulated industry verticals can benefit from RegTech.
If you’d like to join our movement and be part of the RTA membership, www.regtech.org.au/join or to secure your tickets for our #ACCELERATERegTech2020 event on 17 March, www.regtech.org.au/accelerate2020
Thanks and I wish you a successful 2020.
RegTech Industry Report: The Founders’ Perspective
RTA Senate Select Response
Ascent wraps up 2019 trends and forecasts 2020
Encompass talk the importance of AI
ASIC's RegTech Initiatives 2018-2019 Report
Deborah Young is the Founding CEO of The RegTech Association (RTA) and has a long history in advocacy that requires pushing boundaries into new frontiers. She is based in Sydney, Australia. The RTA is non-profit, headquartered in Australia, has a global membership of 120 organisations including RegTechs and Corporates. RTA supports a global centre of excellence for RegTech and has a clear mission to accelerate adoption.
“Despite clear signs of adoption from corporate and government as customers of RegTech, investors have been slow to realize the promise of this space for achieving returns.” Deborah Young CEO of The RegTech Association.
Read more here.
#regtech #regtechmatters #trust #transparency #invest
Australia stands at the brink of global regulatory revolution - where technology will enable corporates to automatically comply, monitor and respond to financial regulation.
The RegTech Association has launched today the first phase of their research that provides a snapshot of their RegTech firms as at November 2019, tracks what the solutions are, who the current customers are, where there is most traction and importantly where their capital is sourced.
Download the Report here. Download the press release here.
All media enquiries to Kelly Bernardi
The RegTech industry in Australia has seen explosive growth and now government is looking to the opportunities. Read more.
Scientia Professor Ross Buckley, KPMG Law - KWM Professor Disruptive Innovation, UNSW and Deborah Young CEO of The RegTech Association (Australia).
"RegTech is the next inevitable evolution of regulation. It’s time that top decision-makers across regulated sectors seized this opportunity – as a means to jump start the economy and to rebuild trust in our institutions.
The next two years will be crucial in determining which markets generate the RegTech solutions that will inevitably underpin global financial services going forward."
The RTA is hoping to help address this issue by creating more dialogue and interaction between RegTech firms and the banks. “More work needs to be done to shorten the sales cycle and for banks to onboard products more quickly,” says Deborah Young. https://bit.ly/2OyEZxk
RTA member Verifier has been selected to take part in a pilot program for Australia’s Open Banking regime, the first test of the new Consumer Data Right.
The cohort will be working with Australia’s biggest banks to begin testing the sharing and integration of financial data in the lead up to Open Banking’s official launch in February.
Our relationship with Microsoft goes from strength to strength.
As our first major tech partner, we are thrilled to announce a new significant platinum partnership that will see Microsoft support The RegTech Association over a number of significant activities into next year.
We have strengthened the community and offered boundless opportunities for innovation and collaboration across the eco-system.
A committee is to be set up for FinTech and RegTech as the Government seeks to recognise the importance that our industry will play in the future of regulation, compliance and our economy overall. We welcome this step and will keep members informed on progression. https://bit.ly/2kIcn8d
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