Financial Services Talking Points | 06/03/2018

In today’s talking points: Hayne Inquiry approaches, Issues in customer authentication, China cuts millions in steel capacity, Beijing set an annual growth target around 6.5 percent.


Hayne Inquiry approaches

The royal commission into financial misconduct by Australian banks starts next Tuesday, with hearings lasting for a fortnight. After immense political pressure banks will now have past credit products and financial behavior scrutinized. Out of public data provided from January 2008-2018, approximately 460 cases were classified as ‘systemic’ and overall involved 170 service providers. Another point of investigation will be the continual super-profits reaped by the big banks. It’s hoped the commission will refocus firms to be ‘customer-focused’, noted the Financial Ombudsman Service.
Read More: Australian Financial Review


Issues in customer authentication

According to a recent report by data intelligence agency GBG and Forrester Consulting, 95% of Australian financial firms are concerned by their capacity to effectively identify customers. Chinese and Singaporean firms reported 71% and 80% respectively. Key reported barriers included missing data delaying decision-making and inconsistent customer boarding in 31% and 50% of cases respectively. Yet encouragingly 92% of firms surveyed affirmed authentication remained a high priority for the next year, in order to be globally competitive and provide the best/safest service possible.
Read More: ChannelLife


China cuts millions in steel capacity

China has cut 170 million tonnes of steel making capacity and 800 million tonnes of coal production, costing up to 1.1 million local jobs in the next five years. Li Keqiang told the annual sitting of Parliament that this year alone steel capacity will be cut by a further 30 million and coal by another 150 million. This can have a significant impact on the price of iron ore, one of Australia’s key exports to China. Department of Industry, Science and Technology predicts iron ore earnings to fall by $10billion this year.
Read more: Sydney Morning Herald


Beijing set an annual growth target around 6.5 percent

At the opening of a legislative session in 2018, premier Li Keqiang has announced that the annual growth rate for China has been set at ‘around 6.5 percent’. It is also pressing ahead with its campaign to minimise risks in the financial system whilst other operations are also having their finances examined. Part of the initiative has been to crack down on the Chinese Finance giant Anbang earlier this year. Premier Li Keqiang has promised to “see that internal risk controls are tightened in financial institutions” and a “serious crackdown on activities that violate the law like illegal fundraising and financial fraud”.
Read More: BBC