New research released today by ASIC shows that Australia is well-placed to harness an ongoing surge of financial innovation.
The Innovation in Financial Technology and RegTech research, conducted by the Digital Finance Cooperative Research Centre (DFCRC) for ASIC, lays out how Fintech and Regtech innovations are evolving across the world.
It highlights that artificial intelligence is becoming embedded in everyday financial operations, including credit underwriting, claims processing, portfolio management and disclosure.
ASIC Chair Joe Longo said, 'Australia has long been a laboratory for innovation, gifting the world groundbreaking technologies from wi-fi to the cochlear implant. The same spirit exists in our financial system.
'For example, Australia is a global leader in some areas, including its "world-class" payments infrastructure, and pioneering 'buy now pay later' sector.'
Mr Longo said that as the pace of change accelerates, industry and regulators will need to work together to ensure that Australia not only keeps up but stays ahead.
'ASIC has often said we want to identify opportunities to back innovation in Australia, and it is clear that innovation can significantly improve productivity in our financial system, boost Australia's economy and lead to better consumer experiences,' said Mr Longo.
'As a regulator, ASIC's role is to make sure that when innovation happens, it happens safely and responsibly, with the wellbeing of end consumers at the forefront of everyone's minds. Good regulation is good for consumers - and good for business.'
'That's why ASIC will continue to prioritise simple, principles-based regulation through our regulatory simplification initiative. We will continue to engage with industry to strike the right balance between protecting consumers, bolstering market integrity and promoting innovation.'
Commissioning the research forms part of ASIC's strategy to support responsible innovation in Australia's financial system. It will inform ongoing industry engagement, including through the ASIC Digital Finance Advisory Panel (DFAP) and targeted roundtables.
