“Welcome news” for the fintech sector in the federal budget
Leading Fintech body CEO spoke out ahead of federal budget announcement, telling Australian Broker that Prime Minister’s $ 1.2bn pledged for digital economy was ‘good news’ for industry.
The new digital economy strategy will see a huge increase in funding in digital industries, with the fintech industry increasing by more than $ 100 million to roll out consumer data rights in the banking industry.
Legislation on the right to consumer data could be adopted to make it easier for customers to switch banks, which many players in the fintech sector believe will translate into a greater market share for neobanks.
“There is a lot of good news about the Morrison government’s digital strategy,” said Rebecca Schot-Guppy, CEO of FinTech Australia. “Overall, we think this indicates a broader shift in their thinking about how the tech and fintech sectors can boost the economy and lead it into a stronger future. This will be a key topic of our Intersekt fintech conference next week. “
“From a policy perspective, there are two key areas that we believe are key to the fintech ecosystem. We welcome the announcement that fintechs will be able to depreciate software, patents, designs and copyrights. “
“We also hope this will be the starting point for a larger discussion on a segregated fund pool for software innovation with the research and development tax incentive.”
Schot-Guppy said Australian broker last week on the importance of Open Banking to the FinTech industry and how critical adapting consumer data rights could be to enabling FinTech to thrive.
“The additional $ 111 million allocated to accelerate the deployment of the Consumer Data Right is good news for the industry,” she said. Going further, we would like to see the government push for the introduction of intermediaries in CDR, as this would have the greatest impact on adoption and adoption. “