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A new era for banking could be on the horizon, with international technology companies looking to muscle in on the banking sector.
According to Bendigo and Adelaide Bank chairman Robert Johanson, the biggest threat to the industry is coming from a new type of non-bank.
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"The biggest competitive threat to banks now comes from non-banks in areas like the payments system, where companies like Google and Amazon, unrestrained by the regulatory burdens of Basel II and III compliance, can pick lucrative niches to exploit," Mr Johanson said.
During the bank's annual general meeting (AGM), Mr Johanson said that while technology has been utilised by the entire banking sector, it may be the providers of such technology who push small banks out of the industry.
Mr Johanson claimed large investments and continual adaptation were key to remaining competitive.
While many would scoff at the idea of making a deposit at Google Bank or approaching Amazon for a home loan, Mr Johanson pointed to the rapidly changing industry we’re currently in as proof that it’s not as ridiculous as it seems.
“In May, the mobile phone became the most popular way of conducting transactions with us, which I think even a few years ago would have been inconceivable," he said.
