1. October 2017
Evolutionary trends in financial services: 3 years after the Murray Inquiry
Kevin Davis
University of Melbourne
Australian Centre for Financial Studies & Monash University

2. The AFSI: Technology & Innovation
“The Inquiry’s recommendations seek to provide more facilitative settings that enable financial firms to innovate – increasing competitive tension, delivering greater efficiency and enhancing user outcomes.”
Focus on:
government-business cooperation;
removing regulatory impediments;
supporting data-driven business models;
regulator flexibility

3. Technology and Response ?

4. AFSI Recommendations - Innovation14
Collaboration to enable innovation 15
Digital identity (federated-style model) 16
Clearer graduated payments regulation 17
Interchange fees and customer surcharging 18
Crowdfunding 19
Data access and use (PC review of costs/benefits) 20
Comprehensive credit reporting 38
Cyber security 39
Technology neutrality

5. Current Status 14 Collaboration to enable innovation
ASIC regulatory hub (April 2015)
ASIC Digital Finance Advisory Committee
Govt Fintech Advisory Committee (2016) 15
Digital identity (federated-style model)
Digital Transformation Agency public consultation on framework late 2017, Govpass platform
(Govt announcement of facial recognition database plans?)

6. Current Status 16 Clearer graduated payments regulation
In progress, and NPP
E-Payments Code amendments -March (but still voluntary)
(RBA/PSB metrics for regulator KPIs)
(PC review of financial sector competition)
PSB Dec 2016 consult on “wallet” arrangements and competition
Banks ACCC application re ApplePay 17
Interchange fees and customer surcharging
Done (RBA May 2016, effective July ). Cost-only surcharges, new interchange standards,
(ATM charging changes)

7. Current Status 18 Crowdfunding
Equity (done– with restrictions), commenced 29/9/17 (ASIC Report 544)
(ASIC template CSF offer doc.,
guidance for CSF intermediaries)
Debt (in progress),
Insurance (unclear)
Australian Market Licence framework?
Initial Coin Offerings (ASIC MR)

8. Current Status 19 Data access and use (PC review of costs/benefits)
Done,
Open Banking Review 20
Comprehensive credit reporting
In Progress (!) Exists but not compulsory;
(PC - legislate mandatory if needed)

9. Current Status 38 Cyber security
Australian Cyber Security Growth Network established (activities?) 39
Technology neutrality
Treasury proposals consultation paper (mid 2016) re electronic distribution of company meeting notices and materials (opt-in, opt-out etc) – nothing since?