The Australian Competition and Consumer Commission (ACCC) chair Gina Cass-Gottlieb (pictured) has brought attention to the changes faced by the financial services sector and what it means for the commission’s work.
During the Gilbert + Tobin Financial Services Forum held on October 31, Cass-Gottlieb noted that the various changes within the sector caused by various factors, such as geopolitical instability, rising cost of living pressures, rapid technological advancements, and climate change urgency, have been affecting the course of operations of both industries and economies.
In her speech, Cass-Gottlieb suggested pressing matters within the sector include how the cost-of-living crisis continues to affect Australians, consumer engagement in financial services, and the lack of competition in the retail banking market.
There was also the issue of payment card surcharges for consumers and small businesses, the move to strengthen consumer engagement through the Consumer Data Right (CDR), and the continued need to enforce competition laws as well as the need for reforms regarding laws surrounding merger control and prohibiting unfair trading practices.
In addition, the rise of the digital economy has also brought about challenges with disrupting and preventing scams and the declining use of cash in the economy.
“The financial services sector is on the cusp of significant transformation. The rise of fintechs, the increasing use of artificial intelligence, and the continued growth of digital payments are all driving innovation in the sector,” said Cass-Gottlieb.
“These innovations may lead to new competition, new markets, innovation, and business opportunities. They also have the potential to deliver significant benefits to consumers by increasing efficiency, reducing costs, and providing access to a broader range of financial products,” she added.
Climate change has also been affecting the financial sector with the frequency and severity of weather events causing higher risks to homes and livelihoods.
“The reality is insurance premiums remain very high for many Australians. This is a consequence of living in a changing climate, and we continue to hear consumers say that the cost of insurance for their home or small business has become so prohibitive they’re forced to make difficult choices — either risk underinsurance or go without insurance altogether,” said Cass-Gottlieb.
With the financial services sector facing continued changes due to all of these factors, Cass-Gottlieb asserted that the commission will push on with its work.
“The ACCC is committed to navigating these changes in a way that promotes competition, protects consumers, and ensures that the benefits of innovation are shared widely,” said Cass-Gottlieb.
