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Innovation in financial services

2017-05-05 13:53:05

In development we often share lessons from the experience of developed countries. However, as technology rapidly changes the way we work and do business, all nations are grappling with some common issues.

Australia and Indonesia recently marked such an opportunity with a new agreement to work together on the expansion of financial services, through sound regulation of financial technology (FinTech).

Indonesia, the largest economy in south-east Asia, hosts a fast-growing financial technology sector. FinTech is impacting a range of areas including payments, insurance, lending and retail banking. 

Australia too, has a dynamic FinTech sector and a policy environment conductive to growth, including a ‘regulatory sandbox’ for technology firms to trial new offerings.

The new agreement, facilitated by AIPEG, means that Australia and Indonesia will share information on emerging market trends and regulatory issues, as well as promoting local innovation.

“Many FinTechs are not constrained by national borders and it is fundamental that we leverage this to share views, exchange information and to discuss some of the challenges that this can create for FinTech businesses and the community,” said John Price, Australian Securities and Investment Commissioner. 

Pak Muliaman Hadad, Chair of the Indonesian Financial Services Authority noted that in Indonesia there are currently about 165 FinTech start-ups and Indonesia can learn a lot from other countries such as Australia.

Fintech Australia welcomed the move, with CEO Danielle Szetho saying, “It’s great to see our regulators are willing to engage and learn from incredibly fast-moving, dynamic and emerging markets, and also that these markets see Australia’s FinTech policy environment as an example of best practice.”