Labor welcomes establishment of Federal Fintech Advisory Group

24 February 2016

The Federal Opposition has welcomed the establishment of a new federal government Fintech advisory body.

The value of Fintech to Australia - a nation already recognised for its strengths in financial services - continues to grow.  

It’s estimated that there are up to 250 Fintech startups operating within Australia, aiming to secure a large slice of the $27 billion worth of current banking industry revenue.

These startups have increasingly attracted venture capital and investment support - globally, investment in Fintech is believed to have grown threefold to $US12 billion in 2014.

Labor extends its bipartisan support for the initiative, despite the fact that the government yet again declined the opportunity to advise of its intent to establish such a group ahead of this announcement.  

We see this as another example of the government saying it values bipartisanship in early stage innovation but failing to live up to its own words.

The importance of this advisory group cannot be understated.  

Given concerns of the Fintech sector about the failure of the Turnbull Government to effectively consult during the development of its equity crowdfunding laws, the establishment of this group is a vital measure to remedy its lacklustre approach to industry consultation.

Last year, Labor announced that a Shorten Government would set up a Treasurer’s Entrepreneur Council. The Council would bring government and early stage innovators together to ensure that broader government policy supports the growth of the startup ecosystem in Australia.