Latest / Best of Business / Jenee Tibshraeny: NZ Herald Wellington business editor on the latest feud between the Reserve Bank and the banks

Transcript

Jenee Tibshraeny: NZ Herald Wellington business editor on the latest feud between the Reserve Bank and the banks · Best of Business

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  Speaker 1: Heller duples see Alla.
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  Speaker 2: no from me, not that I could ever afford one anyway.
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  Speaker 2: Simon makes a great point like if you look at
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  Speaker 2: the new Jags, I mean gone are the oldest types
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  Speaker 2: and those ones that were very distinctive. You know what
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  Speaker 2: I mean. If you look at a modern Jag sedan
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  Speaker 2: You're just driving any old Japanese car.
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  Speaker 3: He does raise a good point though, where like you know,
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  Speaker 3: the three of us here in this in this studio,
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  Speaker 3: Will said, oh yeah, now looks rubbish, and I know
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  Speaker 3: the people back it.
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  Speaker 1: Jake, You're like, oh.
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  Speaker 2: No, modern suber and it's not our three best customers.
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  Speaker 1: Are they not going to buy a Jack now?
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  Speaker 2: Oh goodness, this is a problem. Well you make a
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  Speaker 2: very good point. Well, we'll see how the old blokes
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  Speaker 2: who like to wear the little tartan caps and driving gloves.
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  Speaker 2: Feel about the old upside down jay and the standing
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  Speaker 2: up jakes them just love a cap I bet yeah,
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  Speaker 2: and I bet they just love the middle of the
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  Speaker 2: words suddenly being capitalized like Trump had a spas. Anyway,
• 1:16
  Speaker 2: seventeen pass six onto more serious things. We've got another
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  Speaker 2: face off between the retail banks and the Reserve Bank.
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  Speaker 2: A senior Reserve Bank official has accused the banks of
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  Speaker 2: not investing enough in innovation, but the banks have pushed
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  Speaker 2: back and said, well, we would if we weren't so
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  Speaker 2: bogged down in regulation. Janetibstraaney is The Herald's Wellington Business
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  Speaker 2: editor and with us Hey today, Hey, Heather, what kind
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  Speaker 2: of innovation are we talking about here?
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  Speaker 3: Well, I think the thing that the Reserve Bank and
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  Speaker 3: the Commerce Commission want banks to forge ahead with much
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  Speaker 3: more quickly, and the Minister actually comments and Consumer Affairs
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  Speaker 3: Minister Andrew Bailey, they want the banks to get on
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  Speaker 3: with open banking, so that means allowing financial technology firms
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  Speaker 3: to offer banking services, enabling them to plug into banks
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  Speaker 3: infrastructure so that they can leverage off our customer. If I,
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  Speaker 3: you know, if I approve I can let a financial
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  Speaker 3: technology firm leverage off the bank which has all my
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  Speaker 3: information about harm, spending money and so on, and allow
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  Speaker 3: innovation that way. This is something that's happening in other
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  Speaker 3: parts of the world, the UK, Australia, to varying degrees.
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  Speaker 3: This is meant to be something that can help you
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  Speaker 3: create innovation and that can help for competition the pushes there.
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  Speaker 3: But banks for some years have been dragging their feet
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  Speaker 3: for a number of reasons, some of which might be
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  Speaker 3: quite compelling, in some of which might be, you know,
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  Speaker 3: due to them trying to protect themselves and potentially prevent
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  Speaker 3: competitors coming in.
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  Speaker 1: Yeah, and it was.
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  Speaker 2: It was the Westpact boss Catherine McGrath who was before
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  Speaker 2: the parliamentary inquiry today who said no, no, no, it's
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  Speaker 2: the regulation that's the problem. Did she say what regulation
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  Speaker 2: was problematic?
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  Speaker 1: Yeah? No.
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  Speaker 3: Look, actually i was at a Payments in New Zealand conference.
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  Speaker 3: I've been there for two days. I've been with bankers
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  Speaker 3: and financial technology people and regulators and they've all been
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  Speaker 3: trying to nut out. You know, there's a bit of
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  Speaker 3: tension there between all of them, but there's also quite
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  Speaker 3: a bit of opportunity. Katherine McGrath said it was actually
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  Speaker 3: the combination of regulation that was bogging banks down and
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  Speaker 3: preventing them tying up the resources and preventing them from
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  Speaker 3: investing in the cool stuff basically, and she said, she said,
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  Speaker 3: we just wanted a bit of freedom to get on
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  Speaker 3: with it now, though that comment wasn't necessarily received that
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  Speaker 3: well by the other people at the conference, some of
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  Speaker 3: them are these financial technology firms trying to do cool things. Actually, interestingly,
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  Speaker 3: it was quite good. We heard from someone from Australia,
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  Speaker 3: a financial technology guy who founded up Bank, which is
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  Speaker 3: this innovative bank in Australia, which partnered with Bendigo, which
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  Speaker 3: is one of the traditional banks, and to provide banking
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  Speaker 3: services that are targeted at young people. And apparently this
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  Speaker 3: thing is just taken off. And the person from up
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  Speaker 3: Bank was saying, this is the sort of thing we
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  Speaker 3: should get going in New Zealand where you have FinTechs
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  Speaker 3: working alongside banks. If they can't do it by themselves,
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  Speaker 3: get on board with banks. But banks need to open
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  Speaker 3: up and you know that can allow for a bit
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  Speaker 3: of innovation and the types of products and services that
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  Speaker 3: we don't receive here in New Zealand. Now for some
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  Speaker 3: of you know, for some of us we're like, well,
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  Speaker 3: what do we need sort of you know, banks, banks
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  Speaker 3: are fine, but it sounds like there's a lot happening
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  Speaker 3: around the world that we're not benefiting from here. So
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  Speaker 3: quite quite a good debate.
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  Speaker 2: There, all right, Thank you, Jena, and also thanks for
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  Speaker 2: putting it right. It wasn't that the inquiry. It was
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  Speaker 2: at the conference that she said, Jane to p Traine
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  Speaker 2: the heralds Wellington Business centersor I assumed it was at
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  Speaker 2: the inquiry because she was at the inquiry today and
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  Speaker 2: I need to actually, this is Katherine McGrath. I need
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  Speaker 2: to get you across that, so we'd get it done
• 4:57
  Speaker 2: before this hour is out. You can hear what she
• 4:59
  Speaker 2: had to say about the climate focus that the banks
• 5:02
  Speaker 2: are forcing on our dairy farmers. So you'll get you
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  Speaker 2: to that.
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