Banking royal commission drives investment in open banking, regtech

Within minutes of National Australia Bank CEO Andrew Thorburn entering the witness box at the banking royal commission on Monday morning, he was riffing about Uber and Snapchat. These sorts of apps have fundamentally changed customers’ expectations of banks, he said, forcing banks to lift investment in new technology.

“I think the expectations of having new products and services out in the market quickly to cater for increasingly granular subsets has created the expectation that we can move faster,” he said. “And yet if you’re not investing in new and modern technology enough, your technology systems can’t keep up with it.”

It’s been rare for the Hayne inquiry to tread into technology policy. The odd case study has exposed some bank systems for miscalculating interest rates and fees. Commissioner Kenneth Hayne and his team have been focused on uncovering past misconduct. They have spent minimal time probing about how banks plan to deploy new technologies to help avoid misconduct happening in the future.

But technology will inevitably be a major part of the banks’ response to the inquiry’s final report in February.

During Brian Hartzer’s inquisition at the inquiry last Thursday, the Westpac chief executive was asked whether high-quality financial advice is ever going to be something affordable for ordinary Australians.

“I think, potentially, if it’s done through technology,” Hartzer said.

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Source: Banking royal commission drives investment in open banking, regtech | afr.com