Weekly Update: 28 June 2024

Highlights this week:

• Announcement: After years of extensive consultation with stakeholders, consumer representatives and regulators, as well as approval by ASIC, the ABA released an updated Banking Code of Practice.
• In the media: The News Corp tabloids ran a story on new research commissioned by the ABA saying one in five Australians think Meta (owner of Facebook, Instagram and Whatsapp) are encouraging scams.
• Key data: Monthly CPI for May 2024 was 4.0%, an increase from 3.6% in April 2024.

Quote of the week:
“Australia is one of the few economies in the world where scam and fraud losses are falling, and that’s encouraging because these scammers go where the money is. To use an analogy, we want to be the best alarm system on the street, and Australia is leading the way in that space.”

– Andrew Irvine, ABA Chair and NAB CEO speaking at the ABA Banking Conference – 26 June 2024

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Media & Communications Update:

• CASH: The ABA and Armaguard issued an joint statement announcing that the major banks and major retailers would provide $50 million in financial assistance to the cash in transit company, subject to them meeting monthly key performance indicators and other conditions.
• BANKING CODE: Anna Bligh said this updated rule book for banks had teeth and struck ‘the right balance between creating new protections and simplifying the Code to ensure it is easier to understand and apply – not only for bank staff, but for customers and their representatives too.’
• BANK ON IT: There was extensive media coverage on the surge in digital payments with Anna Bligh declaring “we are in the midst of a digital banking boom in this country.’

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Banking Conference Overview:

It was a rich and action-packed two days this week at the Banking 2024 conference in Melbourne.

The theme of ‘resilient and ready’ promoted extensive discussion and debate across a broad range of topics including the economic challenges facing the industry, the evolving regulatory landscape, the role of innovative technologies in banking such as AI as well as the critical need for resilience in cyber and scam protection.

Key highlights:

• NAB CEO Andrew Irvine and Adelaide/Bendigo Bank CEO Marnie Baker kicked-off the conference with a panel discussion on a wide range of topics including the need to boost housing supply and borrowers being pushed to non-bank lenders.

• APRA Chair John Lonsdale spoke about how they are actively seeking ways to make our regulatory framework simpler, more proportionate and easier to comply with.
• ANZ CEO Shayne Elliott told the conference there were three key areas supporting customer resilience:
  • One – the economy, including the availability of housing in it
  • Two – the products, services and education offered
  • Three – the help provided to those who are experiencing hardship.
• International Justice Mission Australia CEO David Braga told the conference as part of the building resilience against scams panel that Australia continued to face challenges with scammers using crypto-currency platforms to syphon money from Australians.

• ASIC Chair Joe Longo approved the ABA’s Banking Code of Practice saying it was part of the industry’s standard for itself to provide good customer outcomes – and its success relied upon what banks do every day to assist customers and deliver high quality banking products and services.
• Westpac CEO Peter King and Bank of Sydney CEO Melos Sulicich spoke about how banks are responding to a competitive environment while supporting customers through tough economic times.

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This week the ABA launched its annual Bank On It report. The report looks at key consumer and market trends in banking in 2024.

Highlights include the continued shift of customers to digital banking with increased mobile wallet usage and the majority of banking interactions now taking place digitally. The digital banking revolution has also resulted in customers interacting with their bank more than ever before.

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Parliamentary Update:

• The Treasurer approved ANZ proposal to acquire Suncorp Bank.
• The Treasurer delivered an address to the A50 Economic Forum, Sydney. On the merger, he said “a range of different views were expressed.  But after all the analysis, over almost two years, I was advised that it would not be in Australia’s national interest to prohibit this transaction.  The natural progression was to let this deal proceed – but with strict conditions.   These will support jobs, sustain regional banking, and will lead to more private investment in areas like infrastructure, renewables, small business and housing.”
• Minister Rowland and Assistant Treasurer Jones introduced new legislation to give the ACMA powers to establish and run an SMS Sender ID Register that will help disrupt scammers and protect Australians.
• The Treasurer responded to the latest CPI data, and the government’s cost of living relief agenda.
• The Prime Minister addressed the CEDA State of the Nation Conference.
• Chief Minister and Treasurer, Andrew Barr, delivered the ACT Budget 2024-25.
• In the Parliament:
  • Meta and Google appeared before the House of Representatives, Joint Select Committee on Social Media and Australian Society. Representatives from Treasury appeared earlier in the week. Key issues of focus so far include; scams, jurisdiction over offshore companies, age restrictions and sources of business revenue (within the context of advertising and scams).
  • ASIC, Treasury and key stakeholders appeared before the Parliamentary Joint Committee on Corporations and Financial Services inquiry into financial services regulatory framework in relation to financial abuse.
  • Senators Antic, Canavan, Babet, Hanson, Roberts and Rennick introduced a Digital ID Repeal Bill 2024.

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Regulatory Update:

• RBA’s Christopher Kent, Assistant Governor (Financial Markets), gave a speech on Restrictive Financial Conditions in Australia at the ABA Banking Conference.
• APRA Chair John Lonsdale gave a speech at the ABA Banking Conference.
• APRA issued a letter on ADI capital reforms: Minor updates.
• ASIC announced the approval of the Banking Code of Practice.
• ASIC’s Chair Joe Longo gave a speech on Putting customers at the centre of banking at the ABA Banking Conference.

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Coming up next week:

Parliament/Regulators:  

• Parliament is sitting (both houses) – final sitting before the winter break.
• 2/7 – The RBA releases its minutes of the June 2024 Monetary Policy Meeting
• 2/7 – House of Representatives, Joint Select Committee, Social Media and Australian Society

Data announcements:  

• On 3 July the ABS releases May Retail Trade
• On 5 July the ABS releases the May Monthly Household Spending Indicator

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Upcoming Submissions:

Published submissions

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Selected Media:

• AFR – Armaguard secures deal with banks, supermarkets to save cash
• SMH – Thousands of businesses to gain protections under revamped banking code
• Yahoo – Aussies feel social media fails to stop ‘scam war’
• New Daily – Digital wallets dethrone cash as dominant payment type
• The Australian – Cyber crime earnings of $4.5tr represent ‘third biggest’ global economy

Weekly Update