Inquiry chairman David Murray told a separate conference on Thursday that financial services were a key target for leading technology entrepreneurs, and this presented an opportunity to lift competition. "These technologies in our view will create substantial new competition in financial services and put pressure on existing players to make some significant investments in technology that, frankly, they might have made years ago if they had anticipated some of these developments," Mr Murray said. 2 Billionaire Gerry Harvey reveals the fantasy behind … 3 News Corp threatens ‘action’ over leaked …
However, the chief executive of ANZ‘s Australian operations, Phil Chronican, stressed that banks made most of their money in the highly regulated markets of lending money and taking deposits, rather than arranging payments. "Many of the start-ups that are looking at the convenience of consumer payments are looking at a part that delivers a very small part of the profit pool of the banks," said Mr Chronican, who was speaking alongside Ms Carnegie. "Indeed one of the conundrums is that the banks are offering their consumers free payments today, and therefore it’s hard to know where the profit pool that can be attacked is.
She said Australia rather was one of the world’s most innovative markets for digital financial services, leaving few obvious gaps for the company to fill. "I have no plans to launch it in Australia," Ms Carnegie said at a Trans-Tasman Business Circle lunch in Sydney. "My job is to really look and say, ‘what are the big problems or opportunities to solve in Australia? ‘ and there are much more exciting things on my plate.
Mr Chronican added that many technology start-ups eyeing financial services were solving issues specific to the United States, rather than Australia. "You hear about all these things happening in the US, and then you realise that 70 or 80 per cent of them just don’t transport," he said.
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