While we support the development of innovative services and business models that genuinely meet the needs of consumers much of the existing legal and regulatory frameworks are no longer fit for purpose. Allowing FinTech and RegTech industries to expand without adequate regulation poses potential risks to consumers.
In our joint response with Financial Rights Legal Centre (Financial Rights) to the inquiry into Financial Technology and Regulatory Technology, we encourage the Committee to ensure regulatory settings support positive outcomes for consumers. For the FinTech sector to flourish and grow, consumers must have confidence that engagement with their products and services are safe, secure and will not lead to consumer harm.
Given the ability of business models to be created and adapt to avoid regulation, it is our view that much of the existing legal and regulatory frameworks are no longer adequate or are actively being exploited by companies under the guise of “innovation”. The result is that many consumers, particularly those experiencing vulnerability or disadvantage, either do not benefit or suffer detriment from a quickly evolving marketplace.