Marielle Smith (SA, Australian Labor Party) Share this | Hansard source

[by video link] The tabling of this report provides our parliament with an update on our committee's work in relation to its inquiry into the financial technology and regulatory technology sectors. The aim of our inquiry was to identify the challenges and barriers Australian fintechs and regtechs are trying to overcome in attempting to grow their enterprises and their respective industries. It's been a brilliant experience being part of this committee, and I want to start my remarks by thanking the chair, Senator Bragg, and also Senators Walsh, Scarr and McDonald for their keen participation in the hearings and the deliberations of our committee. I also want to thank the committee secretariat, particularly Lyn Beverley and CJ Sautelle, who have been instrumental in ensuring the inquiry's processes have run as smoothly as possible during these unprecedented times.

Whilst we weren't able to reach agreement on absolutely everything in this report, we did all come into this process in good faith, and I'm pleased that there was so much that we could agree on within the interim report. That said, I do need to address some of the issues where there were discrepancies in our opinions, and I'll get to those shortly.

Throughout our hearings we heard from many fintechs and regtechs about the innovation products they've brought to market in Australia as well as the challenges and opportunities facing this sector going forward. I was especially pleased to hear from fintechs in my home state of South Australia, having been an advocate for the further development of this sector and the jobs it could bring to Adelaide.

The inquiry identified many challenges that Australian fintechs and regtechs are confronting and which have only been exacerbated during this pandemic. These challenges aren't insurmountable for the sector, but they do require action from our government. Whilst there has been significant focus on regulatory settings that require modernising to keep up the pace of exciting regulatory and financial products, there are many other challenges ahead. Evidence to this inquiry has brought to light many of the issues that traditionally plague the startup sector, including a lack of access to capital as well as access to skills. Notwithstanding these challenges, according to KPMG, the fintech sector in Australia is already worth about $1 billion, but I am certain that much greater growth is possible here as well as in the regtech industry, and with that growth comes growth in jobs if the government can get these settings right.

As we know, the economic crisis caused by the pandemic has been difficult for all businesses and their workers, but there have been particular challenges for fintechs and regtechs, many of which are at the prerevenue stage of development. The committee resolved to alter its reporting date, as Senator Bragg has said, and shift its focus so that the interim report tabled today would cover off some pandemic related topics as well as look at the other evidence which was provided to our inquiry.

The pandemic, it must be said, has also brought up different opportunities for the use of innovative technologies, and some of the recommendations in our interim report reflect these developments. There was bipartisan support for the universalisation of telehealth and e-prescriptions as well as options to have videoconferencing at annual general meetings under the Corporations Act. It should be noted that we couldn't agree on whether companies should be compelled to provide a hybrid model to allow both in-person and virtual AGM meetings. It's my strong view individual shareholders who wish to opt in to in-person services should be able to do this. This is important for issues related to the digital divide and it's important to ensure the fair participation of older and regional and rural shareholders or shareholders with disability.

Throughout the inquiry's proceedings to date, I've been mindful of the need to always balance the desire to encourage growth in our fintech and regtech sectors whilst protecting the interests of Australian consumers. Of course Labor wants to see these industries flourish in Australia, but it is crucial to ensure that innovation and growth do not come at the expense of consumer outcomes. That principle has been Labor senators' guiding approach to this inquiry. While it was conducted in a collegial and effective manner, with most recommendations receiving bipartisan support, there were some recommendations that either required further clarification or simply could not be supported in this regard. We have indicated this in our dissenting report because it is our firm belief that consumers must not be left behind.

In particular, the government has a responsibility to ensure the financial literacy needs of everyday Australians are keeping up with the availability of more financial products. Evidence to the inquiry suggested that there aren't many of these types of education programs currently in place in our community. This only serves to further disenfranchise vulnerable groups of Australians, and it will only further widen the digital divide which exists within our community with respect to those who have access to and understanding of technology and those who don't.

Labor senators acknowledge that innovation in the financial technology space is an exciting development for the Australian economy, including for consumers. However, its true potential will only be realised if its availability results in a narrowing of the digital divide. The Prime Minister and this government claim to be champions in this space, but what this inquiry has shown is that there is plenty of work ahead for the government to do if the fintech and regtech sectors are to reach their true potential. The implementation of many of the recommendations in this report would provide a good starting point.

There is plenty of work ahead, and there's plenty of work ahead for our committee as well. I'm afraid I probably won't be around for the next part of the research project of the next committee as I will be leaving on maternity leave in a number of weeks, but I wish the committee members, the chair and Labor senators well in the further development of this work.

These are such important sectors. The fintech and regtech sectors offer incredible opportunity to Australia, and they offer incredible opportunity in Adelaide and throughout South Australia, which is of the highest importance to me. So I hope that together as a parliament we can do what we can to make sure that these sectors flourish and that we see more jobs grow from them. I hope also that we make sure that those people who may not be able to keep up with this technology, who face disadvantage through the access to it or who find the increased choice or reduced choice that may emerge from some of these technologies are looked after. I hope that consumer outcomes are looked after and that, as we are looking to support this sector and support growth and opportunity, we are also looking to ensure that no Australians are left behind.

All of that said, despite our obvious policy differences in some areas, I think members of the fintech and regtech sectors can be assured that in the members of our committee they have found champions in the parliament and in the Senate. I hope that gives them comfort that there are plenty of people in this building who understand what it is that their sector presents in terms of opportunity to our economy and to consumers and that we're looking to make sure that it can develop in a way which is beneficial to the majority of Australians, particularly those Australians who stand to benefit from better consumer outcomes.

Question agreed to.