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
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