Ann: ASIC Licensing Brief, page-24

In light of ISX's presentation to ASIC, we also can't lose sight that PM Scott Morrison is the biggest champion of FinTech and particularly RegTech for many years now. As seen below in the YouTube video, Scott Morrison, the former treasurer and minister of finance goes on and on about his enthusiasm for RegTech.

I'm impressed with the level of understanding he has at the time. This was 2 years ago.

For those non holders struggling to understand what ISX does. It's best explained as if we were to explain it to a 5 year old child. (A principle Warren Buffet has recommended when investing in a company).

ISX is just code developed and designed by humans to police payment transactions.

As an analogy, let's say we had to police road traffic. We as humans build traffic lights. The flow of cars would move depending on the signal of the traffic lights. ISX is the traffic light system.

But how they innovated is by removing the yellow light. Hence you only have 2 option: "go" or "stop". There is no longer the 3rd option of the "slow down" yellow light where drivers can make the decision to speed up or not.

So ISX are the traffic light system. They built a system using modern machine learning code that stop or allow a payment to go through as long as it meets its machine coded requirements. The cars are the payment transactions that want to go through the traffic light. This time the rules have changed, the driver of the car can't make the decision to speed up through the yellow light. This effectively restricts the movement of hackers. Hence achieving the desired result: only allowing payments that meet ISX's machine coded requirements.

Then you tell the child, what if you charge every car driver a fee for crossing the traffic light. In some areas, there won't be many cars, so the company won't make much money. However there are other areas where people drive legally and the company can set up their "traffic light system" and make tons of cash. So the game now is just setting up as many traffic light systems as possible.

If Scott Morrison understands RegTech, the general public can as well.