Dee McGrath

Today we’ve contributed to the Commerce Commission's Market Study into Personal Banking Services.   There is a lot in the Commission’s draft report we agree with, including many of the draft findings and recommendations. We look forward to discussing these in coming days.   CEO Antonia Watson says: “We welcome a constructive, evidence-based, and apples-with-apples discussion on competition and profitability.   “Far from presenting a market that is lacking in competition, the evidence in the Commission’s draft report supports a finding that the market is competitive, vibrant, and healthy.”   We’ve provided information to show that when compared with similar banks overseas our return on equity between 2010 and 2021 has been around 12.3% and is within the normal range.   The Net Interest Margin (NIM) for ANZ’s NZ Division (our Retail and Commercial businesses) – the difference between what the bank borrows money at and what it then lends it out at – of 2.56% is also similar to that of similar businesses at ANZ in Australia.   We have a different business structure, so if you compare our New Zealand business with the equivalent sections of our Australian business, their Retail plus Commercial businesses, they have a combined NIM of 2.52%.   You can read CEO Antonia Watson’s thoughts on competition and profitability below.

86

New changes to the Responsible Lending Code are now in effect! 📅 Get up to speed with our FREE Guidance Note, covering key updates, compliance steps, and more. Perfect for lenders and advisers working under the CCCFA. Download now at https://lnkd.in/g65zXASv #ResponsibleLending #CCCFA #Compliance

1

Confirmation of Payee has gone live in New Zealand! 🇳🇿 Raidiam is delighted to be working with obconnect on the delivery and operation of this new service for the New Zealand Banking Association. This started as a vision by Minister Andrew Bayly to safeguard New Zealand citizens from the growing threat of fraud and scams. By setting out his expectations of the sector to introduce a Confirmation of Payee solution across the nation’s banks, he prioritised the security and protection of individuals and businesses alike. This initiative, made possible by the expertise of two UK companies, will enhance trust in payment systems, reduce fraudulent transactions, and bring New Zealand in line with global best practices for financial integrity. Our role has been to enable the Confirmation of Payee ecosystem through our Trust Platform, Raidiam Connect. We are responsible for setting up and configuring both the production and sandbox environments. As with all the ecosystems we power with our technology, this is built on the most secure security standards in existence to ensure that the data sharing is protected and trusted. Raidiam and obconnect are both experts in what we do. That’s why we were able to get this delivered in just four months. No drawn out implementation programme with spiralling costs and long waits for customers to start realising the benefits. Another example of UK fintech companies exporting our homegrown expertise to global markets. This just the start for New Zealand…now they have these capabilities, wonder what they’ll do next? Read more at https://lnkd.in/eRTCKr-M and Minister Bayly’s thoughts at https://lnkd.in/eRcEg9zf #ConfirmationOfPayee #TrustFramework #DataSharingEcosystem Ralph Bragg Barry O'Donohoe Jamie K Leach (MAppFin - GAICD) Simon Lyons Darran Morford Andrew Bayly Glen Hildreth Matthew Lewer James Kelly UK in New Zealand Anna Bligh Ben Goodwin Roisin Perry Jeannie Lum Iona Thomas Sharron Drew Paul Moir Department for Business and Trade Katie Ramsey Janine Hirt Innovate Finance Henk Van Hulle Ezechi Britton MBE Charlotte Crosswell OBE Jane Moore Sheldon Mills

49

10 Comments

Great article from James Eyers of the The Australian Financial Review where Upworth is rightly mentioned as one of the pioneers of the use of CDR (aka Consumer data right or open banking regime). 'Upworth, which uses the consumer data right to create a savings account scanner which identifies when a bank customer can get a better interest rate on their deposit.' You might check it out yourself and see how much you are missing out on your interest rate. That might be more impactful than not buying a coffee here and there (quite fascinating how many people argue on the small things without acting on the big ones - we are speaking of almost 1.5K AUD per australian adult lost PER YEAR because of savings account negligence (essentially getting a sub par interest rate). #BeingSmartWithYourMoney #UpworthAccountSavingsScanner #AFR https://lnkd.in/gwJTgyHZ

3

With a focus on transformation, the recent Financial Services Federation Conference got us thinking about what’s on the horizon when it comes to lending and credit risk, and what the industry needs to be doing to get ready. For Mitchell McDonald, Happy’s Senior Business Advisor, the key standout of the Conference was the session with education futurist Frances Valintine CNZM who spoke about AI, Gen Alpha and what’s next for the world and New Zealand. “Listening to futurists like Frances, you get a glimpse into the future. From what we saw, AI and Gen Alpha are going to significantly change the way we do business. At the moment we’re tacking bits of AI around the edges of our traditional ways of lending, with  the structure remaining largely unchanged, but Gen Alpha’s expected habits for how they will consume financial products are likely to redefine lending structurally, beyond just processes and assets. There’s a big gulf between what we’re doing now with databases and spreadsheets and the future that’s being predicted. The challenge we have as an industry is that transition period. We need to think deeply about the coming changes and strategise how we’re going to get to that point. Happy Prime helps companies join the dots between what they’re hearing at conferences and from people like Frances and how they get there. We make it practical and realistic and encourage people to see the journey to get to the long-term vision.” Happy Prime was proud to be a Gold Sponsor for the 2024 Financial Services Federation Conference. #NewZealandFinance #CreditRiskSpecialists #FinanceInnovation

11

𝗦𝗶𝗴𝗻𝘀 𝗼𝗳 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘀𝘁𝗿𝗲𝘀𝘀 𝗮𝗺𝗼𝗻𝗴𝘀𝘁 𝗰𝗼𝗻𝘀𝘂𝗺𝗲𝗿𝘀 𝗮𝗿𝗲 𝗼𝗻 𝘁𝗵𝗲 𝗿𝗶𝘀𝗲, 𝗮𝗰𝗰𝗼𝗿𝗱𝗶𝗻𝗴 𝘁𝗼 𝘁𝗵𝗲 𝗹𝗮𝘁𝗲𝘀𝘁 𝗤𝘂𝗮𝗿𝘁𝗲𝗿𝗹𝘆 𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿 𝗖𝗿𝗲𝗱𝗶𝘁 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 𝗳𝗿𝗼𝗺 𝗘𝗾𝘂𝗶𝗳𝗮𝘅. 💳 Credit card demand is up, with many Australians reaching out for unsecured credit to alleviate cost of living pressures. Credit card limits are also up 29% year-on-year. 💵 While demand for personal loans has dropped, arrears in this portfolio are rising. Personal loan arrears of more than 30 days past due have hit highest point since 2020. 🏠 Mortgage demand has declined, but the average limit per new mortgage account grew 7% year-on-year reflecting increasing house prices. Higher mortgage stress is showing this quarter, despite stable interest rates. Discover all the insights here: https://bit.ly/4bmHKZB

9

“Digitisation has reduced time to lending decision at Accredo” Head over to our website to read our latest insight into the perception of secured loans being slow, and how we at Accredo work hard to counter that in perception as well as in practice. https://lnkd.in/ezDU5n7D

4

SPOTLIGHT - ANZ Bank opens up about in-house software testing overhaul Rico Zhang of the Australia and New Zealand Banking Group, known as ANZ Bank, explains there was a clear need for a digital revamp that included AI to navigate 'the complex world of banking' https://lnkd.in/dK9zu9Rc #ANZBank #BankTech #Finserv #SoftwareTesting #ICT #AI #QAtesting #AItesting #ANZ #QA

4

In this week's podcast, Darren chats with Hylton Kallner, CEO of Discovery Bank, part of Discovery Limited. Hylton provides an insightful overview of the bank’s journey and offerings, which have transformed the financial landscape in South Africa and garnered attention from international markets. They discuss at length Discovery Banks latest product - Mortgages/Bonds and how that is already disrupting the market. #fintech #challengerbank #southafrica https://lnkd.in/dE74pezG

4

Some banks may see Consumer Duty as just another compliance exercise, but we believe this is missing the point entirely. Consumer Duty is not just a compliance hurdle; it’s an opportunity to redesign the customer app experience. In our latest research report, we present the results of our survey of over 1,700 users. It tells you what your customers need and gives practical advice for meeting those needs. It’s time for less talk and more apption. Find out more in our latest report: https://bit.ly/3QTAoVX

15

It's time to view LMS's latest Remortgage Snapshot! 📈🏘 "Given that millions of borrowers remain at the low rates from pre-2022, many are still to be hit by the rate shock of remortgaging," says our CEO, Nick Chadbourne, when considering the latest stats compared to those several years ago. For those who remortgaged in August this year, they experienced an average monthly payment increase of £329.81 ↗ with 45% taking a 5-year fixed-rate product. Want more insight into the current market? Check out our snapshot 👇 https://lnkd.in/eEfG7tkc #remortgage #statistics #conveyancing #trends #technology #remortgagestatistics #LMSremortgagetrends #brokers #lenders

13

“Many organisations in the Payments industry have a huge void between vision and delivery. They lack a robust Go-To-Market strategy.” Adrian Evans Payments Leaders Advisory, can help future proof your business by enabling you to stay ahead of your competitors with easy to understand revenue plans for investors, board members and employees and a fully optimised customer focused business model. If you would like more information about how we can help, please get in touch. #gotomarket #strategy #gotomarketstrategy #customer #Payments #businessmodel

4

Paul Staples, Group Head of Embedded Banking at ClearBank, discusses how 𝐄𝐦𝐛𝐞𝐝𝐝𝐞𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 addresses business challenges across sectors and details ClearBank’s role in the ecosystem. ➡ https://lnkd.in/gyFSfq6i ClearBank offers Embedded Banking and clearing services, providing institutions with access to secure, real-time payments without the need to acquire a banking license. As the only UK fintech bank with direct access to payment schemes like Bacs, CHAPS, and Faster Payments, ClearBank supports financial institutions in delivering regulated banking services to their customers. By focusing on technology and regulatory compliance, ClearBank helps businesses simplify banking operations and improve efficiency in a changing financial landscape. Read more on page 26 in the 𝐄𝐦𝐛𝐞𝐝𝐝𝐞𝐝 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐚𝐧𝐝 𝐁𝐚𝐚𝐒 𝐑𝐞𝐩𝐨𝐫𝐭 2024. ➡ https://lnkd.in/gyFSfq6i #embeddedbanking #fintech #payments #bankinginnovation #baas #ThePaypers

4

💸 The NSW Government's banking and payments Expressions of Interest (EOI) are now open to interested organisations. 💸 The tender for organisations to provide NSW's core banking functions will seek to leverage new market capabilities to support efficient, cost-effective banking and payments for the NSW Government, its citizens, businesses and suppliers. 🏦 With the #fintech sector booming in Australia, we're eager to tap into the innovative #banking talent pool to drive modern, secure and inclusive payment solutions for the people and businesses of NSW. Currently, the NSW Government handles 200 million transactions a year - highlighting the need for cutting-edge banking solutions. The tender process will support our commitment to fostering #innovation in the digital payments space and will ensure the NSW Government remains a leader in the early adoption of modern banking and payment technology. 📢 Interested parties can learn more about the tender process below: Core Services: https://lnkd.in/gR-6ecSj    Platforms: https://lnkd.in/gi34Tu5U Innovation: https://lnkd.in/gZqGAGQX

136

2 Comments

"Need cash fast💸? Get easy loans with flexible payments💰 tailored to your needs. Quick approval, minimal hassle—your solution💯 is just a click away😍." #homeloan #personalloan #businessloan #mortgageloan #educationloan #allgovtscheme #flexiblepayment #needloan #fastandeassyloan #finbridgefintech

2

We have commenced our Review into Retail Payments Regulation which will look at the costs merchants face when accepting card payments and the framework for surcharging. Read more here: https://ow.ly/ORAA50TLlyE #PaymentsReview #Surcharging

45

2 Comments