Xinja was delighted to respond to ASIC on their proposed approach to ‘regulatory technology’ or (jargon alert) ‘regtech’ as it’s called. We look at how regtech can seriously reduce financial paperwork headaches for people.
So what on earth is ‘regtech’ & why should you care?
For Xinja as a neobank, ‘Regtech’ actually plays a key role in how we’re going to create innovative customer experiences that are incredibly low cost, fast, simple and easy, whilst ensuring that customers are protected and their money and data is secure. So far, the regulatory framework has imposed a lot of unnecessary costs & stress on people, because tech has not moved fast enough to meet customer protection needs. For example, all that face to face & paper-based compliance. Don't you just hate finding documents, copying documents, going to banks with documents, going home again because you brought the wrong document, going back to the bank, getting a parking ticket, then anxiously waiting to hear if things are approved….Wouldn’t it be nice if you could do all that on your phone, with nothing but your driving licence and a thumb? AND not get charged bank fees for paperwork?
"Don't you just hate finding documents, copying documents, going to banks....getting a parking ticket etc"
Make it human
Ironically, it’s the technology that’s going to make this all more human. Talking to our founding Xinjas, they want (and expect!) us to use tech to more real time transparency & simple process with no compromise on security. And that’s exactly what regtech can help us deliver.
Suggestions we’ve made
In our response, we recommended that younger consumers be consulted as part of the process (they tend to get overlooked) and that everyone look outside their immediate industry for innovation inspiration. We also suggested that regtech might have a role in making investment more available for young people and in accelerating early stage fintechs, who after all are often focused on solving customer problems.