The Australian financial technology sector could be bolstered by an agreement between the local corporate regulator and its Indonesian counterpart to share information about market trends and regulatory issues.
The Cooperation Agreement between the Australian Securities and Investments Commission (ASIC) and Indonesia’s Otoritas Jasa Keuangan (OJK) aims to “promote innovation in financial services” in both markets, ASIC said in a statement last week.
“Many fintechs are not constrained by national borders and it is fundamental that we leverage this to share views, exchange information and to discuss some of the challenges that this can create for fintech businesses and the community,” said ASIC Commissioner John Price.
“This agreement is also a further reflection of the deep ties between ASIC and OJK. We look forward to working more closely with OJK on the exciting fintech developments in both out countries.”
ASIC already has fintech Cooperation Agreements with financial regulators in Singapore, the UK, Canada and Kenya.
Indonesia is home to a rapidly growing fintech sector, with a report from the Indonesia’s Fintech Association and DailySocial in late 2016 estimating there to be around 140 independent fintech companies operating in the country, compared to just “a handful” prior to 2015, according to Tech in Asia.
The bulk of those companies are working on payments solutions, according to the report.
Meanwhile, investment in Australia’s fintech sector soared to more than $US600 million ($780 million) in 2016, up from just over $US50 million four years prior, according to a study released in March.
According to KPMG International’s The Pulse of Fintech report, in 2015 $US185 million was injected across 23 fintech investments in Australia and a year later, $US656 million was injected into 25 deals.