FINTECH INNOVATION: ALL SHOW, POOR FORM UNDER TURNBULL GOVERNMENT

 A sharp spotlight was placed this week on the Turnbull Government’s latest efforts to drive Fintech innovation - and what we saw wasn’t pretty.

The Senate Standing Committee on Economics Legislation examined the draft laws aimed at lifting the poor performance of the government’s struggling Fintech Regulatory Sandbox.

 

Fintech Sandboxes have been launched around the world to encourage Fintech startups to develop innovative financial products and services.

 

In the UK there have been 50 products trialed through their Fintech sandbox.

 

In Australia less than half a dozen startups have used the sandbox.

 

Shadow Minister for Digital Economy Ed Husic said:

 

“The Turnbull Government often talks about its game changing innovation reforms – but there’s little to show for all the hype.

“From delays to introducing equity crowdfunding, to concerns around the angel tax incentives you can now add the poor performance of their Fintech sandbox.  Who know how many opportunities have been lost because of another botched reform.”

 

Deputy Chair of the Committee, Labor Senator Chris Ketter observed:

 

“The Inquiry demonstrated that this Bill is too restrictive for the industry.  It exposes consumers and benefits no-one.

 

Once again Turnbull has tried to copy a UK model but the devil is in the detail and he has totally missed the mark.  The Fintech sandbox is a fizzer.”

 

The Committee received evidence that:

 

“The legislation would allow, for example, unlicensed financial advice on superannuation products, insurance and long-term investments.”

 

“We need to ensure that innovation leads to services that genuinely meet the needs of Australian consumers rather than simply selling a toxic product in a more effective way.”

 

“… the sandbox outcome has been disappointing.
”Fintech Australia submission

 

This government, that had so much to say about innovation and how startups will boost the economy, has done so little to provide considered and material support to the sector.

It is about time that the Turnbull government delivered substance instead of show by supporting Labor’s amendments to the Bill.