New research points to the need for responsible oversight
Australia is well placed to capitalise on accelerating financial technology innovation, according to new research published by the Australian Securities and Investments Commission (ASIC).
The report, Innovation in Financial Technology and RegTech, was conducted by the Digital Finance Cooperative Research Centre (DFCRC) on behalf of ASIC. It maps global trends in fintech and regtech development, with particular attention to the growing role of artificial intelligence in core financial functions such as credit underwriting, claims processing, portfolio management and disclosure.
"Australia has long been a laboratory for innovation, gifting the world groundbreaking technologies from wi-fi to the cochlear implant," said ASIC chair Joe Longo (pictured top). " 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."
Comparative maturity assessment across sectors and jurisdictions 
Source: Innovation in Financial Technology and RegTech report
Longo noted that the pace of technological change will require closer cooperation between regulators and industry.
"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," he said.
"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."
Longo added that ASIC would 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," he said.
According to the regulator, the research will inform its ongoing industry engagement activities, including through the ASIC Digital Finance Advisory Panel (DFAP) and targeted roundtables.
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