In an attempt to promote innovation in their financial service markets, the Australian Securities and Investment Commission (ASIC) and Indonesia’s Otoritas Jasa Keuangan (OJK) have entered into a Fintech Cooperation Agreement.
Stated in a release Friday the 21st in Melbourne, the agreement creates a framework for collaboration between ASIC and OJK in the growing innovations of financial services. The two are to share information on regulatory issues and emerging market trends arising from the increase in innovation. ASIC and OJK believe that cooperation will allow them to further promote innovation in their respective markets.
The framework established in this Cooperation Agreement is a affirmation of the strong relationship between the two regulating bodies.
Indonesia possesses the largest economy in south-east Asia and hosts a rapidly growing fintech sector. These companies are affecting many fields, including payments and transfers, financial management, insurance, lending and finance, retail banking and markets, exchanges, and supporting services.
Pak Muliaman, Chairman of the OJK, stated
“I hope this further collaboration will be able to promote innovation in our financial service markets and to deepen engagement that can be used for financial sector development in both countries.”
ASIC Commissioner, John Price, added;
“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.”
“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 our countries.”
ASIC is focused on the impact that Fintechs have on revolutionizing the financial service and capital markets. ASIC works on developing guidance on how the new market developments fit into the existing regulatory framework. In addition, the regulatory body has also launched an Innovation Hub in an attempt to assist Fintechs’ navigation of the regulatory framework without compromising the confidence of investor and financial consumers.
The Innovation Hub, founded in 2015, allows entrepreneurs to understand how regulations may impact their businesses and helps ASIC to monitor the development of Fintechs.
ASIC works very closely with other existing market regulators in the attempt to comprehend current developments and to help start-ups to expand their target markets. Fintech cooperation agreements, such as the one signed between ASIC and OJK, have also been made with the Monetary Authority of Singapore, the United Kingdom’s Financial Conduct Authority, the Ontario Securities Commission, and Capital Markets Authority of Kenya.
This increase in collaboration will help policy makers to adjust their current regulative structure to accommodate fintech startups and assist the growth of fintech firms. Will these cooperations further assist Fintechs takeover of the financial services market?