Financing Australia's Future
The Australian Finance Industry Association (AFIA) is the leading industry advocate for Australia’s finance sector. AFIA represents more than 100 providers of a consumer, commercial or wholesale finance that operate across Australia.
Our members provide the finance that Australian families, business and large corporate entities need to operate and grow.
Formerly known as the Australian Finance Conference, AFIA supports the businesses and brands that enable Australians to achieve success by Financing Australia’s Future.
Roundtable on Innovations in Small Business Finance
15 June 2018
The Reserve Bank hosted a roundtable discussion on innovations in small business finance yesterday, along with the Australian Treasury and the Australian Finance Industry Association. The roundtable was chaired by Christopher Kent, Assistant Governor (Financial Markets) of the Reserve Bank.
Small businesses are very important for the economy, but they face challenges accessing finance. Entrepreneurs find it hard to borrow funds when they first start their businesses, and when they are looking to expand. There is a heavy reliance in small business lending on housing collateral and personal guarantees. Entrepreneurs also find loan application processes burdensome, and it can be difficult to compare products across lenders.
The aim of the roundtable was to discuss innovative financing options for small businesses that are emerging from outside the traditional banking system. The participants included representatives from non-bank lenders, government and financial regulators. A broad range of financing options was discussed, including debtor finance, cash flow lending and marketplace lending.
The participants highlighted a number of issues in the small business lending market, including:
- How to improve access to finance for small businesses while appropriately managing risk
- How to take account of collateral other than real property when lending to small businesses
- The availability of funding for new lenders to small businesses
Another key focus of the roundtable was how to improve the information available for both lenders and small businesses. Comprehensive credit reporting and open banking have the potential to improve access to finance by providing lenders with more information for making lending decisions. Small businesses could also benefit from receiving more information about their borrowing options, and the factors that affect their creditworthiness.
Participants agreed that innovation will be important for improving outcomes for both borrowers and lenders in the small business lending market. The Reserve Bank will continue to monitor developments closely.
AFIA introduces the National Car Rental Code of Practice
1 March 2018
The Australian Finance Industry Association (AFIA) – Fleet & Rental Division has today released a new national Car Rental Code of Practice. AFIA Rental Group members make up a significant proportion of the Australian car rental industry and have committed to delivering enhanced protections for their customers.
As the Australian body for car rental companies, AFIA developed the Code to provide greater transparency and enhanced consumer confidence around car rental practices, on a national scale. The Code ensures an industry standard is set and met on a wide range of issues including: transparency of pricing and credit card charging practices, rental contract terms and damage assessment and billing. This is supported by a clear process to allow customers to raise complaints with our members where they should be resolved in a timely and fair manner. On those occasions where customers may want further consideration following a member’s decision, a further conciliation process is provided.