The Australian financial services industry needs to embrace open access data in order to maximise the benefits of fintech innovation, says Treasurer Scott Morrison.
Speaking at the Fintech Australia Collab/Collide 2016 conference in Melbourne on Friday, Treasurer Scott Morrison said Australia’s data represented “enormous untapped potential” for the industry.
“The government understands the importance of a move towards unified open aggregated financial data standards in order to legitimise the current practices employed by fintech innovators and give Australians better ways to understand, manage and maximise their finances,” Mr Morrison said.
Mr Morrison said there were already many fintech firms utilising aggregated financial data, but that there was ambiguity in the both the “legitimacy and the standards by which they currently access customer financial data, especially where a user's banking credentials are required”.
“There is a need to reform the code and implement a strict standard to protect Australian customers while allowing them the benefit of technology innovations,” he said.
The Treasurer said Australia was in the midst of “one of the most exciting phases in the development of fintech” since e-banking, with huge implications for regulation, compliance and the provision of services.
“Realising our fintech potential will transform our economy, not just in the financial services sector, but by providing the tools our economy needs to continue our successful transition from the mining investment boom to a more diversified economy,” Mr Morrison said.
“This is how we can deliver higher real wages and improved living standards for all Australians.”