Fintech minister places target on capital
The government will be looking at ways to boost private sector investment in the fintech and regtech industry, the assistant financial services minister has said, as the coronavirus pandemic has shaken access to working capital.
Assistant minister for superannuation, financial services and financial technology Jane Hume made the comments while speaking to Stone & Chalk chief executive Alex Scandurra, during a webinar for the incubator’s members.
Fintechs will be part of the recovery and “new economy” post-COVID-19, the senator stated, but she acknowledged that many businesses in the sector will be facing difficulties during the crisis.
“We know that the ecosystem is feeling the pressure acutely. We have problems of lower availability of capital,” Senator Hume said.
“You guys have short runways, there’s been falling demand and I know that you’ve been making some really difficult decisions in the past few weeks and we think that’s probably going to continue for some time.”
While the $130 billion JobKeeper package will be available to a number of fintechs, some will not qualify, Ms Hume noted, as start-ups that are pre-revenue. Other measures, such as the PAYG cash flow boost of up to $20,000 and instant asset write-off, may apply.
She noted post-pandemic, the government will be picking up its prior focus on providing incentives for capital and private sector investment.
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