Fintech split on lower regulatory hurdles
Challengers to the banks and global payment giants disagree on whether there should be an easing of regulations for finance start-ups, a major recommendation of the Murray inquiry.Peer-to-peer lender RateSetter Australia argues current regulations are adequate and flexible enough. It said “graduated” regulation applied based on the company’s risk to the financial system suggested by the Murray financial system inquiry could threaten confidence in the emerging loan business models – particularly those lending to the public.”It is important that regulations for P2P lending are not weakened in any way and that consistency of regulation is critical for the P2P lending industry to prosper,” it said in its submission to the government on the final report of the financial system inquiry.
