Australian fintech companies have applauded the Treasurer's announcement that he will force the major banks to share their customers' data.
The Australian government's announcement that it will twist the banking majors' arms and force them to share their customers' credit data has been applauded by the Australian fintech industy – some of whom have long campaigned for the change.
“This is a significant announcement from the Government, showing it really is serious about levelling the playing field and driving greater competition in Australia’s finance system,” said Daniel Foggo, CEO of RateSetter Australia and one of the most determined and consistent campaigners for mandatory data sharing.
“We’ve seen from our experience in the UK how [comprehensive credit reporting] gives consumers better pricing, greater convenience and helps build a more robust financial system.
“It has been necessary for the Government to step in for the benefit of consumers and small businesses, as the banks failed to participate on a voluntary basis, despite having over three years to do so.”
“Until now, a number of Australia’s big banks and lenders have not been sharing the positive data which should allow customers to get better credit,” Mr Stoyan said.
“Today’s announcement will help consumers get lower interest rates and better access to credit… We are also encouraged by the Treasurer’s desire to extend CCR to include telcos and utilities. This will help ensure Australia has a world class regime.”
“Spotcap welcomes Scott Morrison’s plans to implement comprehensive credit reporting. This is the first step in making financial conditions fairer for businesses and consumers alike,” he said.
Jason Yetton, the CEO of SocietyOne, said the move was long overdue.
"We are delighted that the Federal Government plans to extend the existing legislation and strongly support moves to introduce a mandatory comprehensive credit reporting regime by mid-2018. The benefits for consumers are huge as this will transform the opportunities for them to get a better deal when applying for loans and enable them to shop around for a better interest rate," he said.
FinTech Australia, the Australian fintech lobby, has been advocating for comprehensive credit reporting since February 2016, when it published a detailed fintech policy paper.