Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), has entered a FinTech cooperation agreement with its Indonesian counterpart in a bid to bolster innovation in the sector.
Signed on Friday between the ASIC and Indonesia’s Otoritas Jasa Keuangan (OJK) in Melbourne, the agreement will see the two regulators combine to develop and establish a framework that promotes financial services in each other’s markets.
The framework will see a common agreement to share information on new market trends and regulatory questions in the face of new financial innovation. The regulators believe the collaboration will help push development of these innovations in their countries.
In a statement, ASIC commissioner John Price said:
Many fintechs are not constrained by national borders and it is fundamental that we leverage this to share views, exchange information and it is fundamental that we leverage this to share views, exchange information and to discuss some of the challenges that this can create for fintech businesses and the community.
The partnership is particularly notable due to the geographical proximity of both countries and Australia’s Asian neighbor being the largest economy in south-east Asia. The ASIC announcement points to FinTech developments in a number of traditional financial and banking sectors including payments and transfers, insurance, retail banking and markets, lending and finance, among others.
Peer-to-peer lending, crowd funding, investment and financing are all services already being provided by FinTech developers, the ASIC observed.
OJK chairman Pak Miliaman added:
I hope this further collaboration will be able to promote innovation in our financial service markets and to deepen engagement that can be used for financial sector development in both countries.
Indonesia’s OJK introduced relaxed regulations for peer-to-peer FinTech firms earlier this year alongside a sandbox for that will see startups test their services under regulatory supervision. Australia also threw out the rulebook late last year, welcoming industry firms to friendlier shores.
The ASIC has notably favored FinTech innovation, particularly with blockchain technology. In March 2016, the regulatory body’s commissioner encouraged rregulators around the world to “start thinking about” blockchain technology. Last month, the regulator released an blockchain information broadsheet, with questions for Australian companies and startups considering the use of the innovative technology.
Featured image from Shutterstock.