Australian government establishes fintech advisory board
(24 February 2016 – Australia) The Australia government has announced that it is establishing a financial technology (fintech) advisory group to position the country as an industry leader in the Asia-Pacific region.
Chairman of fintech hub Stone & Chalk, and Westpac Bank director, Craig Dunn will chair the advisory group. The full group includes:
- Simon Cant, Co-Founder and Managing Director, Reinventure
- Matt Symons, Co-Founder and CEO, Society One
- Jason Yetton, former Group Executive, Retail and Business Banking, Westpac
- Nerida Caesar, CEO and Managing Director, Veda
- Kelly Bayer Rosmarin, Group Executive, Institutional Banking & Markets, Commonwealth Bank
- Ben Heap, Founding Partner, H2 Ventures
- Claire Wivell Plater, Owner, The Fold Legal Pty Ltd
- Asher Tan, Co-Founder and CEO, Coinjar
- Libby Roy, Managing Director, Paypal Australia
- Jost Stollman, Executive Director and CEO, Tyro Payments
- Jonny Wilkinson, Co-Founder and Managing Director, Equitise
- Scott Farrell, Partner, King & Wood Mallesons
In a joint statement, Prime Minister Malcolm Turnbull and Treasurer Scott Morrison said:
"Although Australia is a leading financial services market in the region, the sector is becoming increasingly globalised and exposed to technological disruption. Many traditional financial products are being disrupted by the fintech sector, which is well positioned to become a leading player in the Asia-Pacific."
The Australian Labor Party has backed the establishment of the advisory body, with Shadow Minister of Financial Services and Superannuation Jim Chalmers and Shadow Parliamentary Secretary for Digital Innovation and Startups Ed Husic saying "Labor extends its bipartisan support for the initiative, despite the fact that the government yet again declined the opportunity to advise of its intent to establish such a group ahead of this announcement.
"We see this as another example of the government saying it values bipartisanship in early stage innovation but failing to live up to its own words.
"The importance of this advisory group cannot be understated,” they said.
Stone & Chalk CEO Alex Scandurra has lent his support to the initiative, stating it marks Australia’s progress in recognising the importance of the fintech market.
"Today we have succeeded in moving fintech closer to the heart of the nation's economic agenda and on behalf of the startups and partners of Stone & Chalk I thank the prime minister and the treasurer for their encouragement and support," he said.
"With the recent launch of a new Fintech Association, we now have a single platform to drive much-needed change. I encourage every fintech venture across Australia to join the association and contribute to the development of an open dialogue with government and industry."
In October 2015, East & Partners (E&P) Business Banking Index found that nearly 40 percent of businesses in the Micro and SME segments could not recall a single fintech brand. The figure increased to over 50 percent of Corporates and nearly 60 percent of Institutional enterprises.
Of the companies that were able to recall a fintech business, only 61.6 percent were aware and understood what product or service that fintech was offering.
“Although there has been a long term upward trend in negative sentiment from small businesses towards their bank, feedback indicates that non-bank providers are not taking full advantage of the gap in the market,” said E&P’s Head of Markets Analysis, Martin Smith.
“Either local businesses are not familiar with fintech companies at all, or do not know what products and services they provide.
“This lack of awareness of technology based non-bank providers is having a direct flow through to these fintechs balance sheets as they are failing to capitalise on increasing appetite for additional business banking services as highlighted in the BBI by way of their client base not being aware of them,” he said.
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