Weekly Update: 11th Aug 2023

“As customers increasingly shop, pay, or are paid digitally, they expect their banking and payment services to be available digitally in a format that is convenient, cost-effective, stable and secure. Banks have reshaped their networks to reflect changing customer use, and expectations.” 

– ABA Deputy CEO Vanessa Beggs, speaking at the Tech in Gov Conference in Canberra

---

Feature:

As part of this year’s Garma Festival, the ABA facilitated a First Nations home ownership discussion with Minister for Indigenous Australians Linda Burney, Indigenous Business Australia (a government agency responsible for writing home loans for First Nations people who do not qualify for commercial finance) and banks. 

It was a fantastic opportunity to meet with the Minister and her agency to discuss possible ways forward for government and the banking industry to work closer together on supporting more First Nations people with home ownership opportunities. 

---

Parliamentary Update:

• The Treasurer, Minister for Finance, Attorney-General, and Assistant Treasurer issued a media release following reported tax adviser misconduct. The announcement covers three areas: strengthening the integrity of the tax system, increasing the powers of regulators, and strengthening regulatory arrangements to ensure they are fit for purpose.  
• Housing Minister Julie Collins announced development of a new National Housing and Homelessness Plan, with state and territory governments and local government associations.  
• Assistant Treasurer Stephen Jones announced that the Treasury’s managed investment schemes regulatory framework review consultation has opened. Submissions close on 29 September 2023.  
• The Prime Minister announced a National Cabinet meeting on 16 August 2023. The key priority for the meeting will be to discuss progress on housing and planning reforms, including proposals to increase housing supply and affordability. 
• The House of Representatives Economics Committee held a public hearing with the Reserve Bank of Australia.  

---

Policy Update:

The ABA: 

• and several member banks participated in the Broome Circle banking roundtable this week. These roundtables have become an important forum on how to better support remote First Nations customers access banking services in the Kimberley and beyond. The ABA spoke about the current project underway on ensuring better acceptance of non-traditional forms of identification for Know Your Customer (KYC) purposes, noting many people in remote First Nations communities lack driver licenses. 
• participated in a focus group run by Elder Abuse Action Australia to inform the next iteration of the National Plan to Respond to the Abuse of Older Australia. 
• attended the AusPayNet Economic Crime Forum. Participants heard updates on the establishment of the National Anti-Scams Centre, as well as bank and law enforcement initiatives to fight economic crime including scams. 

---

Regulatory Update:

• The ACCC has denied authorisation for ANZ to acquire Suncorp Bank. Read more  
• ASIC has commenced a greenwashing case against Active Super. Read more.  

---

Economic Update:

• Commodity prices continue to trend down with index of commodity prices now at 83.2, from a 2021/22 indexed base of 100. This is partly due to a reduction in the price of thermal coal, which has approximately halved from its peak in mid-2022.  
• The Australian payments landscape continues to evolve, with more and more account-to-account transfers taking place through the New Payments Platform (NPP). The number of NPP bank transfers grew 20 per cent in between June 2022 and June 2023. Transfers taking place on NPP now account for more than a quarter (28.8%) of all transfers between bank accounts, Figure 1, with direct debit and direct credit accounting for the remaining 71 per cent. 

---

Events:

• Anna addressed an event hosted by Minter Ellison talking about leading in crisis, the changing nature of banking and how financial institutions can stay ahead of evolving cyber threats.

• ABA Deputy CEO Vanessa Beggs and Head of Future Policy Nicholas Giurietto spoke at the Tech in Gov Conference held at the National Convention Centre in Canberra. 
  
  Vanessa spoke about changing trends in the banking sector, including the rapid move to digital with 98.9% of customer interactions now take place via apps or online. She also outlined how the banking sector is reshaping its networks to reflect changing customer use, and expectations: “As customers increasingly shop, pay, or are paid digitally, they expect their banking and payment services to be available digitally in a format that is convenient, cost-effective, stable and secure.”  
  
  Nicholas Giurietto, participated in a panel exploring the implications of using artificial intelligence and automation within the public sector. Speaking at the session, Nick said: “AI will require a rethink of regulatory models. How will business, AI and regulators work

---

Upcoming Submissions:

Published submissions

---

Selected Media:

• AFR – Why Comyn says CBA record profit helps bank customers   
• SMH – Wary consumers fear RBA is not done with rate rises  
• AFR – CBA profit ‘uninspiring’ as ANZ walks back cashback.  
• SMH – Mortgage arrears set to increase even if rates stay on hold  

Weekly Update