7 February 2018
The Australian Bankers’ Association will carefully analyse the Productivity Commission Draft Report, consult with its members and make a further submission to inform the final report expected mid-year.
Competition in the industry, as the draft report clearly states, has delivered tangible benefits to the Australian customer. This backs up findings of previous inquiries such as the Financial System Inquiry which recommended certain reforms which have since enhanced competition in the industry.
The report recognises that we have a strong and dynamic banking system that fosters innovation, such as tap and go payments, safe and quick transfer of funds and quick and easy approvals for loans.
The report highlights key strengths and benefits of competition in Australia’s banking industry, notably:
- The ease and speed at which Australians can apply for a loan, transfer money or pay for services with just the tap of a card.
- Australia being at the forefront internationally of innovative bank services and payments.
- Australian bank fees being relatively low when compared to the international average.
- Australia’s openness to competition from smaller players which will benefit customers.
The draft report covers other issues within the industry, which the ABA will carefully examine and respond to in its forthcoming submission.
The industry is already undergoing major reform which will address issues identified in this report and others.
In approaching changes in the mortgage broking industry, we have sought to further promote competition and customer choice.
Together with our colleagues in the Combined Industry Forum, which includes a cross section of the mortgage broking industry, banks are committed to implementing changes that make a meaningful difference to customers while supporting a vibrant mortgage broking industry.
In December last year the Forum agreed on a landmark reform mortgage broker package to promote better conduct in the industry and implement a better oversight program over all mortgage brokers.
ENDS
Contact: Rory Grant 0475 741 007
Latest news
Australian Banking Association CEO Anna Bligh: Today Australia’s banking system is coming together to launch the most comprehensive set of new anti-scam reforms. With a level of unprecedented cooperation, banks, commercial banks, building societies, credit unions, and mutual banks have joined together to commit to a set of anti-scam reforms to keep Australians and their… Read more »
Australian banks have joined forces to launch a new Scam-Safe Accord to deliver a higher standard of protection for customers and put scammers out of business in Australia. This Accord, between Australia’s community owned banks, building societies, credit unions and commercial banks is a comprehensive set of anti-scam measures across the entire industry. “This Scam-Safe… Read more »
Banks will contribute $19 million over three years to the Government’s voluntary financial counselling model announced today by Minister for Social Services, Amanda Rishworth. “Banks large and small are proud to be funding the lions share of this initiative.” said ABA CEO Anna Bligh. This funding will help increase the availability of free, independent counselling… Read more »