An Australian paradigm shift from "traditional banking to Fintech”

June 04 2018

The banking system has constantly been developed with an assistance of FinTech universe. In the recent past, we’ve noticed that SWIFT and some international banks keen on the solutions for international payments and how the distributed ledger technology (DLT) Proof of Concept (PoC) to help Nostro account reconciliation. Back in April 2017, SWIFT announced the deployment of the decentralized ledger platform as a basis for updating its practices of cross-border payments in collaboration with Australia and New Zealand Banking Group, BNP Paribas, BNY Mellon and others.

For now, FinTech Australia is glorifying the Aussie Government’s optimistic policy push concerning Open Banking system. The advocacy group says the Australian decision has pushed back against big banks to open true banking reform by next year.

“A government-backed Open Banking framework seems to be a game-changer for consumers and businesses, along with drive a new wave of FinTech innovation and growth in Australia,” commented FinTech Australia chair Stuart Stoyan. “Ultimately, the customers are facilitated to use a regulated system to unlock the power of their own data to get access to financial services better tailored to their needs.”

The reform is expected to push down lending costs while allowing people to more easily manage their financial services. Switching to a Fintech challenger bank should be far easier, he added.

The Australian Banking Association (ABA) had been arguing for an 18-month timeframe for the introduction of the first phase of open banking (including product information and transaction data) and for this timeframe to only begin after Parliament passes legislation, FinTech Australia noted. It was also arguing for all mortgage and lending data to be included at an unspecified later date.

The government has decided to accept the arguments of FinTech Australia to include data from joint accounts in the reform’s first phase, another point of disagreement with the ABA.

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