The government of Australia has announced an inquiry into the state of competition in the financial system. The initiative was announced by Treasurer Scott Morrison, MP. Morrison said the Australian government was committed to ensuring the country’s financial system was innovative and fostered competition. Morrison has tasked the Australian Productivity Commission to hold an inquiry into the state of competition.
The Productivity Commission will be looking into how to improve consumer outcomes, the productivity and international competitiveness of the financial system and economy more broadly, and support financial system innovation, while balancing financial stability objectives. The mission to improve competition was described as part of the Turnbull government’s plan to support economic growth and deliver better outcomes for consumers and small businesses. The inquiry will review key segments in the financial system including the degree of vertical and horizontal integration. It will also examine competition in the provision of personal deposit accounts and mortgages and services and finance to small and medium businesses.
The Australian governments goal of boosting competition mirrors what has already taken place in the UK. The Financial Conduct Authority’s mandate to ensure competition, and thus empower entrepreneurial Fintech services, has made the UK one of the most vibrant Fintech ecosystems in the world.
The Australian government all interested parties to consider making a submission to the Commission. The Inquiry will commence on 1 July 2017 and is due to report to the Government by 1 July 2018.