Alternative credit is very happy with the 2017 budget.
For Australia’s small but vibrant alternative lending scene, the 2017 budget was a winner.
Not only did the government make good on key promises: extending ASIC's regulatory sandbox, watering down barriers for new banks, and reigning in the massive power of the Big Four. It also announced that it would make moves towards a UK-style open banking regime—the lodestar policy for alternative lenders.
“We commend Scott Morrison for jumping on the Productivity Commission's recommendation to introduce an open data regime for banks in Australia,” said Daniel Foggo, the CEO of RateSetter.
“The government has stood up to the banking sector lobbyists and shown it's serious about boosting competition in financial services.”
For Boyd Pederson, the CEO of Bigstone Capital, the budget was a good start but hopefully more would come.
“This is a very good starting point and really shows that the federal government is serious about driving innovation and growing fintech. But I think it’s potentially not quite enough and I hope that there’s more in the closet,” he said.
“Examples of what other governments have done include support for lending companies as the British Business Bank did post-GFC and the creation and enablement of open data not just from the banks but from other sources.”
For Lachlan Heussler, the CEO of Spotcap Australia, the budget was welcome news.
“In our view this federal budget proves to be sensible, and focuses on the main issues in the Australian economy,” he said.
“Spotcap has long agreed on the importance of mandating open data… it enables that person or business to control their information, shop around for the best deal, and ultimately equip them with the knowledge they need to make the best financial decision.”
Scott Price, the founder of PropertyShares, was cautiously optimistic.
"It is great that the government is being supportive of small businesses and fintechs but there needs to be great care in how consumer data is managed to ensure that the highest levels of protection and privacy are upheld."
