Kia ora,
Last week, we had a strong Kiwi presence at Fintech Australia’s Intersekt 24 and gained valuable insights. While many of the themes were familiar to us, Australia’s fintech sector is generally more progressive, largely driven by government initiatives, policies and investment. It’s worth noting a few key points and previewing what may be on the horizon locally.
Last year, Australia’s fintech sector generated an estimated $30 billion in revenue (compared to New Zealand’s ~2.5b), $64m in job creation and attracted investment in a new $10m fintech-focused digital hub. However, the Consumer Data Right (CDR) has seen high compliance costs and relatively low consumer uptake. This offers valuable lessons for our sector, especially as we anticipate the completion of our CDR legislation by mid-next year.
In addition, Australia plans to reform the Buy Now Pay Later (BNPL) sector, ban screen scraping and focus on improving trust by tackling scams and fraud. Regarding Central Bank Digital Currency (CBDC) there’s a growing consensus that a retail CBDC poses challenges, particularly for the mortgage market. As a result, the initial focus is expected to be on the wholesale market. Finally, ongoing issues with Australia’s Digital Identity Bill, similar to ours, indicate it’s not yet ready for private market adoption but remains a critical area of focus.
With around 15% of our members either based in or connected to Australia, developments across the Tasman are always of interest. The key takeaway is to stay on track in New Zealand, focus on passing legislation, and keep working closely with industry and Government.
This year, we’ve focused on strengthening our relationship with the Government to promote competition and opportunities for fintechs. Hon Andrew Bayley has shown interest, and after our recent roundtable, we’re presenting feedback on key issues, including creating a fintech sandbox (with FMA and MBIE), and addressing cross-border FX transparency, interchange and scheme fees.
Soon we will begin sharing programme announcements for our third annual FinTechNZ Hui Taumata on 11 March 2025. Please register your interest here and learn how you can be involved as a partner or speaker.
Ahead of our Annual Meeting on 6 November, nominations are now open for our Executive Council.
Welcome to our newest members, APIMatic, BSI Group, Christian Savings, Homely New Zealand, Seriti Solutions, Shift Compliance, VJMC Consulting, Voluntas Group, Wismopay and XEBO.
Ngā mihi nui
Jason Roberts
Executive Director
Read the full news here: Navigating our fintech future
