FinTechNZ – it’s all about trust!

Challenging traditional models

FinTech is challenging traditional financial models, but building and maintaining trust is essential across the sector from all providers. Trust is critical, no matter the experience across applications, platforms, mainstream providers or how we navigate partnerships. Any new model needs to develop inherent trust to ensure its end customers are safe, secure and easily enabled to have great experiences.

Embracing new forms of money – – we need to focus on trust
Cryptocurrency has been making headlines with the dramatic collapse of FTX crypto exchange rippling through the market. Despite the inherent security, safety and privacy values of blockchain, distributed ledger and crypto technologies, the (very human) speculative behaviour and high profile failures severely undermine trust as investors and actually risk tarnishing the entire sector. After FTX’s fall from grace last week, I spoke with Binance’s Ben Rose and Greg Behre from CentraPay. We discussed the importance of supporting new forms of finance and the critical need for the industry to self-regulate. Without this, serious damage occurs. It is clear the vast majority of sector leaders see better regulation, improved practice and consumer safety as essential pre-requisites to maintain trust. New forms of money still require a trust framework. Regulation is sought and it’s coming – but it still needs shaping.

Minimising risk
From greenwashing to consumer trust, we need to identify the issues and address them to enable a new generation of trusted and sustainable finance systems. It’s critical that we can show finTech is here to help with companies specialising in this domain, like ESP, CoGo and Archanum, and that its success is evidence-based and proven. Speak to any FinTech founder and I know they will share their motivation and drivers to help. Mandatory climate-related financial disclosures legislation is a good example of regulation driving change and FinTechs rising to the challange.

Ensuring good Consumer Data Right (CDR) implementation as a part of the trust framework
As we gear up for CDR legislation in New Zealand, focusing on the banks in the first instance, we do need to get this right. Noting that banks around the world have typically been slow, I was recently asked on RNZ (listen here) about the speed of implementation. Yes, it is too slow, but on the other hand, it is essential to learn from overseas experience. Critical ingredients in trust and customer experience relate to privacy and data security. Internationally there have been instances of data loss, the consequential fear of organisations on liability and regulators now stepping in on industry behaviour. In NZ we do have the opportunity to learn from overseas and the right size, right shape for all Kiwi’s. Pace is also a concern and the need for governance over the API standards.

Applauding global recognition
Congratulations to Valocity Global for being named runner-up Global FinTech of the Year at the Singapore FinTech Festival. Valocity Global’s CEO and FinTechNZ’s Co-Chair Carmen Vicelich is sharing her global insights from offshore markets at the FinTechNZ Hui Taumata in February. Here she shares five key focus areas for fintechs, including the sustainability of data. Read more.

Calling all fintech exporters! Help us shape our focus
New Zealand Trade and Enterprise (NZTE) in collaboration with FinTechNZ will soon be surveying our community about export related issues when FinTechs are scaling up and entering new markets. Later this week we will send a 10 question survey to help generate community led data insights, including key export issues and barriers to market.

Sustainable Finance update
We are undertaking a strategic scope and creating a narrative to engage with stakeholders as part of the initial development of our research report. Also, we have collaborated with RegTechNZ to host the next Connect Event: Preparing for new sustainability regulation on 7 December in Auckland.

RegTech update
This month, RegTechNZ is also launching a tri-party collaboration with Australian RegTech Association and AWS. This includes a series of webinars exploring common themes and providing global insights.

Thanks for your support
Thank you to those who attended our Annual Meeting earlier this month. We warmly welcome our new executive council members and thank our departing members Richard Copus, ANZ and Leeanna Kohn-Hardy, Finappster.

Learning Te Reo and Tikanga Māori
Don’t forget, if you haven’t already contacted us but would like to begin your Te Reo Māori journey in 2023, please express your interest here.

From Aotearoa to the world
Preparations are well underway for our FinTechNZ Hui Taumata on 28 February in Auckland. We’re bringing together the brightest minds to build understanding, capability and expand capacity to help Kiwi companies export our smart solutions. If you haven’t already checked out our excellent selection of speakers please do and preview the schedule for the day. Super Saver pricing closes on Thursday 8 December, so don’t miss out on securing your special rate, plus our members only 2-for-1 ticket offer.

Nga Mihi
Jason Roberts
Executive Director