Powered by MOMENTUM MEDIA
subscribe to our newsletter

Big banks ‘won’t be replaced’: Macquarie

Companies such as Apple and Google are “not interested” in entering the regulated financial services space, and the top five Australian banks will continue to dominate for decades, according to Macquarie Group.

Speaking at the AltFi Australasia Summit in Sydney earlier this week, Macquarie’s head of corporate development and strategy for banking and financial services, Ben Perham, was asked about the threat “digitisation” posed to the big banks.

“The ambitions of Apple and Google and so forth are hard to predict, they probably change a lot,” Mr Perham said. “But certainly when we talk to them, they’re not interested in being a regulated financial services business.”

Apple and Google are, however, definitely interested in “participating” in the fintech space – with the payments area “critical” when it comes to digital disruption.

“But that’s at the level of customer interface rather than at the level of the rails that actually run the payments system,” Mr Perham said.

Advertisement
Advertisement

“So I’ve got no doubt that Apple’s got big aspirations and obviously a lot of cash to do whatever they like, but in terms of the next evolution of change, I don’t see that coming so much from Apple and Google.”

Mr Perham said he is confident the top five Australian banks will still be around in 20 years’ time.

“Personally, I don’t see us being replaced. [The rise of fintech is] more about partnering,” he said. “I’d be very, very surprised if the largest five banks in Australia aren’t the largest five banks in 20 years’ time.”

[Related: Google launches mortgage calculator]

Big banks ‘won’t be replaced’: Macquarie

PROMOTED CONTENT


>Speaking at the AltFi Australasia Summit in Sydney earlier this week, Macquarie’s head of corporate development and strategy for banking and financial services, Ben Perham, was asked about the threat “digitisation” posed to the big banks.

“The ambitions of Apple and Google and so forth are hard to predict, they probably change a lot,” Mr Perham said. “But certainly when we talk to them, they’re not interested in being a regulated financial services business.”

Apple and Google are, however, definitely interested in “participating” in the fintech space – with the payments area “critical” when it comes to digital disruption.

“But that’s at the level of customer interface rather than at the level of the rails that actually run the payments system,” Mr Perham said.

“So I’ve got no doubt that Apple’s got big aspirations and obviously a lot of cash to do whatever they like, but in terms of the next evolution of change, I don’t see that coming so much from Apple and Google.”

Mr Perham said he is confident the top five Australian banks will still be around in 20 years’ time.

“Personally, I don’t see us being replaced. [The rise of fintech is] more about partnering,” he said. “I’d be very, very surprised if the largest five banks in Australia aren’t the largest five banks in 20 years’ time.”

[Related: Google launches mortgage calculator]

Big banks ‘won’t be replaced’: Macquarie
mortgagebusiness

Latest News

The federal Treasurer has granted approval for a non-major bank to hold a controlling stake of 100 per cent in Members Equity Bank Limited...

The prudential watchdog has granted Sydney-based challenger in1bank an extension for its restricted banking licence. ...

The major bank has reached an agreement to settle a class action in the US over the bank bill swap rate. ...

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.