What's Happening Tomorrow
Roza Lozusic, Executive Director Policy & Public Affairs; Joel Lipman, Partner, Financial Services, Deloitte; Michelle Levy, Partner, Allens & Doug Nixon, Oceania Banking & Capital Markets, EY
Where is the future going?
Michelle Levy (Allens) - The future is about superannuation which continues to grow. They need to invest their capital somewhere, so NBLs will benefit. Future is bright for large super funds.
Doug Nixon (EY) If brokers are getting saturated in the home loan market, they’ll move towards business lending. Also, a lot of opportunity to go beyond price competition, but to service the whole consumer lifecycle.
What is the key to unlocking this future?
Doug Nixon (EY) - Brokers are starting to act like CFOs for small business, which is an opportunity for small business. It does come down to developing that relationship.
Joel Lipman (Deloitte) - Customer experience at scale is one of the things that AI can offer small business.
Michelle Levy (Allens) - Industry needs to start again with product design, to reduce the potential for bad outcomes. There should only be good products in the market. The question will then not be about whether a product is suitable or unsuitable for a customer. It will just be whether it is a good product.
What lessons can be drawn from recent regulator scrutiny, such as from recent reviews and regulatory interventions?
Doug Nixon (EY) - Businesses should watch how regulators deal with KYC requirements and fines. From a prudential perspective, 2025 will be year of operational resilience – see CPS 230. Als consumer hardship will be a big theme for 2025.
Michelle Levy (Allens) Capital for super funds and their liquidity poses a huge risk for members. Also, with cold calling scammers trying to get people to switch super funds, ASIC will be looking at who is responsible (platforms or advisers).
Joel Lipman (Deloitte) - Society holds too much hope on regulations, when there’s so much business can already do to make better outcomes for customers.