Australia as a fintech hub must have global focus to stand a chance
Australia’s hopes of becoming a hub for technology-based finance firms could be “stillborn” if local rules do not encourage the new wave of start-ups to have an international focus, says the global head of financial services at PricewaterhouseCoopers.
With the federal government signalling support for technology-based industries, a prime area with growth potential is the fintech sector: entrepreneurs targeting the finance industry’s hefty profits.
However, the global nature of digital technology poses new challenges for regulators accustomed to having more domestic priorities.The global leader of financial services at PwC, Nigel Vooght, said financial regulators would face new dilemmas in trying to encourage fintech while also carrying out their mandate.
“Your government is saying they want to set up a technology centre here, which is great, but you can’t do it as an island,” Mr Vooght said on a visit to Australia.
“By definition you have to work with the rest of the world to create opportunities. If your regulator doesn’t embrace that, and it puts territorial controls around it, I would argue your technology centre will be stillborn.”