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Leading industry figures have expressed fears that Google may move into financial services.
Mortgage Choice chief executive Michael Russell told a Deloitte roundtable he was concerned about what strong digital brands might do with their large pools of data.
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“Google, Yahoo!, Coles, Woolworths and Apple are the ones that alarm me in terms of their capability to quickly morph into a financial services business,” he said.
“Can a strong non-banking digital brand expand into financial services? How far can a brand like Google and Apple expand their propositions? They are the ones that we stay awake at night worrying about.”
UBank operations director Rob Plow also warned the industry to be alert to the threat.
“Someone like Google knows that a customer is looking for a new home loan much earlier in the process than the banks do,” he said.
Macquarie Bank’s head of intermediary banking, Frank Ganis, said Google was highly regarded by consumers.
“What consumers are looking for, especially after the displacement that has occurred over the last 10 years, is trust, credibility and something that they are confident will be sustainable over a period of time,” Mr Ganis said.
“Public perception is probably that Google has met those expectations and has earned the right through trust and credibility, placing Google in a leading position.”
Commonwealth Bank’s head of mortgages, Clive van Horden, said Google was trusted more than many financial institutions.
“Obviously, it is still a bit of a stretch to pull banking customers entirely away from their banks but given the way they invest in innovation, they are a real competitive player, especially in the payments area,” he said.
ING Direct’s executive director of distribution, Lisa Claes, called for lenders to follow the lead of the strong digital brands.
“Customers don’t look at everyday consumables and financial services in compartments. Google, Apple and Amazon have completely reshaped what customers expect from any product or service provider,” she said.
“And they say: ‘Why can’t my bank do this as well?’ And the bank that does – that can deliver quickly and offer access, transparency and immediately while providing financial services – well, it will be the financial services institution that will win.”
Deloitte’s roundtable also included representatives from ANZ, Citi, NAB Broker, Pepper Group and Yellow Brick Road.
