The Australian government has commissioned an independent review into the creation of an open banking framework.
Treasurer Scott Morrison has announced the creation of an independent review into a potential open banking regime, led by King & Wood Mallesons partner Scott Farrell.
Farrell, who is also a member of the government’s Fintech Advisory Group, will be supported by Treasury officials as he undertakes the review, with a final report due by the end of 2017.
Financial Services Reform
The review is part of the Australian government’s proposed Banking Executive Accountability Regime (BEAR) announced in the federal budget in May and opened for consultation last week.
«Our moves to introduce an open banking regime in Australia are part of our comprehensive reforms to financial services, the government is committed to opening the door to new banking entrants and new financial products and services,» Morrison said.
Moving In
A research paper recently released by the SWIFT Institute noted the major banks have two significant competitive advantages over fintech companies or start-ups: familiarity with regulation and consumer trust.
Japanese startup Moneytree however is not waiting and has already launched its personal finance application in Australia, providing consumers with the ability to view their financial data including savings, loans, credit cards, loyalty cards, superannuation, and shares, from different providers in one central location.
Taxing Times
Australia's largest banks, ANZ,Westpac,National Australia Bank and Commonwealth Bank estimate they will need to cough up in the region of $1.4 billion when the new government bank tax takes effect in 2017-18.
The country's only global investment bank Macquarie, has has hinted it may go offshore to avoid the new levy.
