Fintech a vertical integration disruptor – ASIC
Vertical integration, particularly with respect to the major banks, is likely to be eroded by financial service technology, according to Australian Securities and Investments Commission (ASIC) chairman, Greg Medcraft.
Giving evidence before Senate Estimates, Medcraft said he believed the banks were starting to realise that owning something and cross-selling was probably not a viable strategy anymore.
Asked by Tasmanian Green Senator, Peter Whish-Wilson whether vertical integration was being addressed in line with the recommendations of the Murray Review, Medcraft said he believed progress was being made.
Whish-Wilson also asked whether the financial services technology changes had been a factor in ANZ’s decision to exit some of its wealth management business.
“I think the market will reshape banking – and the market includes things like the crowd and digital disruption,” the ASIC chairman said.
“Things are moving much faster. You are already seeing the sale of wealth management,” he said. “The point is that, these days, I do not necessarily need to own something to actually offer the best product to my customer.”
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