Latest / The SME Stream / 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 · The SME Stream

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  Speaker 1: Heller, du hither the original Jag badge gives the car
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  Speaker 1: at least fifty percent of its cool factor. So it's
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  Speaker 1: a big no from me, not that I could ever
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  Speaker 1: afford one anyway. Simon makes a great point like if
• 0:10
  Speaker 1: you look at the new Jags, I mean, gone are
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  Speaker 1: the old s types and those ones that were very distinctive.
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  Speaker 1: You know what I mean. If you look at a
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  Speaker 1: modern Jag sedan, like what, it just looks like a
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  Speaker 1: Mazda or something. You know, you take the take the
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  Speaker 1: growley cat off, You're just driving any old Japanese car.
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  Speaker 2: He does raise a good point though, where like you know,
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  Speaker 2: the three of us here in this in this studio,
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  Speaker 2: Evel said, oh yeah, now it looks rubbish. And I
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  Speaker 2: know the people you're like, oh no, modern suber and
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  Speaker 2: it's not our three best customers are They're not going
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  Speaker 2: to buy a Jack now this is a problem.
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  Speaker 1: Well you make a very good point. Well we'll see
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  Speaker 1: how the old blokes who like to wear the little
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  Speaker 1: tartan caps and driving gloves feel about the old upside
• 0:49
  Speaker 1: down Jay and the standing up jakes just love a
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  Speaker 1: capital jet, oh I bet yeah, And I bet they
• 0:53
  Speaker 1: just love the middle of the words suddenly being capitalized
• 0:56
  Speaker 1: like Trump had a spaz. Anyway, seventeen pass six onto
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  Speaker 1: more serious things. We've got another face off between the
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  Speaker 1: retail banks and the Reserve Bank. A senior Reserve Bank
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  Speaker 1: official has accused the banks of not investing enough in innovation,
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  Speaker 1: but the banks have pushed back and said, well, we
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  Speaker 1: would if we weren't so bogged down in regulation. Janet
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  Speaker 1: Tibschraeney is The Herald's Wellington Business editor and with us.
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  Speaker 1: Hey today, Hey, Heather, what kind of innovation are we
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  Speaker 1: 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 yourhead 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 data.
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  Speaker 3: If you know, if I approve, I can let a
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  Speaker 3: financial technology firm leverage off the bank which has all
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  Speaker 3: my information about harm spending money and so on, and
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  Speaker 3: allow innovation that way. This is something that's happening in
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  Speaker 3: other 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. Yeah.
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  Speaker 1: And it was the Westpact boss CAAs McGrath who was
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  Speaker 1: before the parliamentary inquiry today who said no, no, no,
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  Speaker 1: it's the regulation that's the problem. Did she say what
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  Speaker 1: regulation was problematic?
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  Speaker 3: Yeah?
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  Speaker 1: 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 where I've been with
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  Speaker 3: bankers and financial technology people and regulators and they've all
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  Speaker 3: been trying to nut out. You know, there's a bit
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  Speaker 3: of tension there between all of them, but there's also
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  Speaker 3: quite a bit of opportunity. Katherine McGrath said it was
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  Speaker 3: actually the combination of regulation that was bogging banks down
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  Speaker 3: and preventing them tying up the resources and preventing them
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  Speaker 3: from investing in the cool stuff. Basically, and she said,
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  Speaker 3: she said, we just want a bit of freedom to
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  Speaker 3: get on with it now, though that comment wasn't necessarily
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  Speaker 3: received that well by the other people at the conference.
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  Speaker 3: Some of them are these financial technology firms trying to
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  Speaker 3: do cool things. Actually, interestingly it was quite good. We
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  Speaker 3: heard from someone from Australia, a financial technology guy who
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  Speaker 3: founded up Bank, which is this innovative bank in Australia,
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  Speaker 3: which partnered with Bendigo, which is one of the traditional banks,
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  Speaker 3: and to provide banking services that are targeted at young people.
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  Speaker 3: And apparently this thing is just taken off and the
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  Speaker 3: person from up Bank was saying, this is the sort
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  Speaker 3: of thing we should get going in New Zealand where
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  Speaker 3: you have FinTechs working alongside banks. If they can't do
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  Speaker 3: it by themselves, get on board with banks. But banks
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  Speaker 3: need to open up and you know that can allow
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  Speaker 3: for a bit of innovation and the types of products
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  Speaker 3: and services that we don't receive here in New Zealand.
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  Speaker 3: Now for some of you know, for some of us,
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  Speaker 3: we're like, well, what do we need sort of you know, banks,
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  Speaker 3: banks are fine, but it sounds like there's a lot
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  Speaker 3: happening around the world that we're not benefiting from here.
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  Speaker 3: Quite quite a good debate there.
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  Speaker 1: Yah all right, thank you Jane, and also thanks for
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  Speaker 1: putting it right. It wasn't that the inquiry. It was
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  Speaker 1: at the conference that she said, Janet to trainee the
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  Speaker 1: Heralds Wellington Business Centers. I assumes it was at the
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  Speaker 1: inquiry because she was at the inquiry today and I
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  Speaker 1: need to actually, this is Cassroe McGrath. I need to
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  Speaker 1: get you across that, so we'll get it done before
• 4:41
  Speaker 1: this hour is out. You can hear what you had
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  Speaker 1: to say about the climate focus that the banks are
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  Speaker 1: forcing on our dairy farmers. So you'll get you to
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  Speaker 1: that