Banking Royal Commission – Positive intentions! Negative impact?
A centralised controlled environment may eliminate some poor behaviour by the minority, but at present, it lacks commercial application and flexibility. It is internally focused – not customer focused!
To drive a change in culture, requires a shift in focus and leadership.
Meaningful, customer focused change rarely arises through increased bureaucracy or over compliance!
As it has become harder for businesses and individuals to readily access the finance they need, many have turned to more nimble online suppliers and second tier financiers.
The reality is the harder traditional Lenders make it for clients to source finance, the more appealing such providers become – even if the cost is higher! Businesses and individuals need finance and they will go to where it is available!
Unless the Banks have the freedom to revert to a more balanced, commercial approach to lending, then more and more frustrated customers will have no option but to seek finance from available alternate providers.
Whilst non-Bank Lenders have a critical role to play in the industry, what is occurring is not necessarily in the best interests of the customer!
Finance plays such a critical role in our community and whilst there will be periods where some tightening is required, this needs to be carefully managed.
When finance is difficult to obtain, or the process protracted, the “knock on” to the community and economy can be enormous.
Whilst clearly changes were needed within the Finance Industry, it is important not to lose sight of the fact, that in the main, the Finance Industry has served the community well and the vast majority of Bankers, have their customers interests at heart.
As we go through this process, a balanced approach is needed. Critically, the implications of changes to policy and processes need to be carefully considered.
If not, the potential exists for the “cure” to end up killing the patient!