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ASIC reveals fintech co-operation plans

By Aleks Vickovich
2 minute read

ASIC chairman Greg Medcraft has elaborated on the corporate regulator's intended approach to fintech providers and its plans for an "innovation hub".

Speaking at the Australian Financial Review’s Banking and Wealth Summit in Sydney yesterday, Mr Medcraft revealed greater details about the “innovation hub” unveiled at the regulator’s annual forum last month.

Mr Medcraft said ASIC intends to make it “quicker and easier” for financial technology start-ups to understand and engage with the regulatory system, laying out a plan for engagement with these businesses.

“We will streamline ASIC’s approach to facilitating business for new business models – for example, by looking to streamline common application processes, including applying for or varying a licence and in granting waivers from the law,” Mr Medcraft said.

“We will [also] look at making ourselves more accessible to new types of businesses – for example, by developing a portal on our website – a one-stop shop for innovative businesses to access information and services directly targeted at them.”

The ASIC chair said his organisation intends to co-operate fully with existing initiatives in the fintech space such as Stone & Chalk as well as working “cohesively with government and industry”.

In addition, the regulator will establish a digital finance advisory committee made up of fintech industry stakeholders to help inform its regulatory activity in this market.

Mr Medcraft said the current environment is “ripe for disruption” and that technology has yet to fully impact the financial services market.

“The great drawcard of digital disruption is the opportunity it brings … new forms of access, greater competition, and greater efficiency,” he said.

“I consider that the businesses that will end up succeeding – from both the incumbents and the disruptors – will be those that provide a sustainable demand-driven offering, which puts the customers’ interests at the core of what they do – that is, those businesses which have a culture that emphasises the best interests of their customers.”