FinTech Aus calls on Parliament to pass consumer-friendly laws
Voluntary promises by the Australian Banking Association on behalf of the big four banks can’t be relied on, and Parliament should pass consumer-friendly legislation, like Comprehensive Credit Reporting, without delay, according to FinTech Australia.
FinTech Australia voiced concerns that there may have already been attempts by the banks to delay or roll back on the promise, and suggested it could have been a tactic to prevent compulsory regime.
CEO of FinTech Australia, Brad Kitschke, said trusting the banks to share data on a voluntary basis would end in poor consumer outcomes, and delaying legislation would only be in the interests of the banks.
“Allowing the big banks to control or restrict access is not in the interests of consumers,” he said.
“Without access to this data, consumers will continue to be forced to accept the off-the-shelf generic products on offer from the big banks that don’t meet their needs.”
Kitschke said the Royal Commission proved the banks don’t have a great track record with acting voluntarily in the interests of the consumers, and a delay would undermine competition.
“While the concerns of consumer advocates about hardship needed to be worked through a further delay would now hurt consumers and competition,” he said.
“With what we know from the Royal Commission, there should be a greater sense of urgency to increase competition, not rely on a voluntary promise from the banks.”
The peak body said it has established its own Consumer and Small Business Advisory Committee to allow “concerns from consumers advocates to be better understood”.
AUTHOR
Anastasia Santoreneos
Recommended for you
The top five licensees are demonstrating a “strong recovery” from losses in the first half of the year, and the gap is narrowing between their respective adviser numbers.
With many advisers preparing to retire or sell up, business advisory firm Business Health believes advisers need to take a proactive approach to informing their clients of succession plans.
Retirement commentators have flagged that almost a third of Australians over 50 are unprepared for the longevity of retirement and are falling behind APAC peers in their preparations and advice engagement.
As private markets continue to garner investor interest, Netwealth’s series of private market reports have revealed how much advisers and wealth managers are allocating, as well as a growing attraction to evergreen funds.
