Should banks be allowed to charge fintechs to access customer data? And could doing so stifle open banking innovations?
Government officials are rethinking a proposal that would allow banks to charge financial technology platforms wanting to access customer data, such as budgeting apps.
The move comes after MBIE's proposal to allow as much as $5 per month per customer drew the ire of many in the fintech sector - with some businesses saying the fees would threaten their viability.
Lance Wiggs is an investor in the budgeting app Pocketsmith.
He says the average customer would reach the proposed cap within 15 days, and the fee would make the business unviable. MBIE acknowledges the concerns and says it will provide more advice to the Commerce and Consumer Affairs Minister, Scott Simpson, ahead of a decision before December.
Kathryn speaks to Lance Wiggs and Nick Houldsworth - co-founder of fintech Prosaic which provides an artificial intelligence tool to accountants, and Massey University Associate Professor of Banking, Claire Matthews.
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