Financial technology companies which have engaged with the Australian Securities and Investments Commission's (ASIC's) Innovation Hub have been getting license approval 45 per cent faster than other license applicants, according to ASIC chairman, Greg Medcraft.
Addressing a Sydney dinner this week just a day ahead of ASIC releasing class waivers to allow eligible financial technology (fintech) businesses to test certain specified services without holding an Australian financial services or credit licence, Medcraft claimed the regulator's Innovation Hub had been a success.
"In the last year alone we've engaged with 109 different entities — robo-advisers (25), marketplace lenders (22), payment system and credit providers (17 and 11) and equity sourced crowdfunders (nine)," he said.
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"In June we opened up the Hub to regtech entrepreneurs and we'll be engaging with them in a roundtable in the new year to better understand developments."
"Our statistics on the licensing of fintechs indicate that — on average, without formal assistance — it takes 205 days for a licence applicant to receive a draft licence. However, fintechs who have engaged with the Innovation Hub prior to submitting their application get approved for a licence, on average, in 110 days — or nearly 45 per cent faster than if they hadn't engaged with the Innovation Hub."