A daily download of SME, startup, fintech and tax news from around Australia.
The prudential regulator is worried banks have spent too little maintaining computer systems, which could lead to more IT outages further eroding trust in the financial system, and warned them to boost investment spending.
A “backlog of maintenance” jobs across a “patchwork of systems” reflected a period of “persistent under-investment” in information technology, and banks are under-prepared for the government’s new credit reporting and open banking regimes, said Australian Prudential and Regulation Authority chairman Wayne Byres.
Small businesses, particularly in rural areas, aren’t aware they can claim a tax break that the federal government has painted as stand-out policy to support the sector.
Suppliers of equipment to small businesses say it has fallen to them to educate their customers on the tax incentive – which allows them to write off new assets worth less than $20,000 – because of a lacklustre sales campaign from the government.
Ireland-based global fintech Priviti has launched in Australia as the country prepares for the imposition of new Open Banking legislation and the Consumer Data Right which require major banks to make data on credit and debit card, deposit and transaction accounts available by July 2019 and mortgages by February 2020.
Based at the fintech and innovation hub Stone & Chalk, the Sydney office of Priviti will be led by Dermot McCann, Priviti’s head of APAC and chair of the Australian Information Industry Association’s Financial Services Group.
Employer groups and accounting experts say Labor’s plan to abolish the Superannuation Guarantee threshold will saddle small businesses with higher costs and administrative headaches.
Nestled in its wide ranging superannuation policy announcement last week, Labor committed to changing the rules so that employees that earn less than $450 per month from an employer will be entitled to compulsory superannuation contributions.
The imminent open banking scheme presents huge opportunities for Australian FinTechs, but comes with some very real risks, SocietyOne chief executive Mark Jones said.
The peer-to-peer lender recently hit $500 million in lending, a record for an Australian company, and with open banking, a comprehensive credit reporting scheme and the Royal Commission driving customers away from the big banks, the future looks bright for the local FinTech sector.
Uber rose to prominence and captured market share with a pugnacious style that revolved around flouting laws and picking fights.
But financial services is not ride-hailing.