Australia's regulatory framework for payments is no longer fit for purpose as non-bank fintechs play an increasingly important role, one of the country's leading bankers says.
Reserve Bank of Australia deputy governor Michele Bullock cited the entry of buy now, pay later companies, smartphone-based services and cross-border payment companies into Australia's payment system as accelerating the need for change.
"Currently many of these non-bank participants, they play a key role in the payment system (but) they're not actually captured by our regulatory powers," she told the Financial Services Institute of Australasia Regulators 2022 conference on Friday.
