Big banks 'won't be replaced', says Macquarie

Tim Stewart
— 1 minute read

The likes of Apple and Google are "not interested" in entering the regulated financial services space, and the domination of the top five Australian banks will continue for decades, says Macquarie.

Speaking at the AltFi Australasia Summit in Sydney yesterday, Macquarie head of corporate development and strategy for banking and financial services, Ben Perham, was asked about the threat of 'digitisation' to the big banks.

"The ambitions of Apple and Google and so forth are hard to predict, they probably change a lot," Mr Perham said, "but certainly when we talk to them, they’re not interested in being a regulated financial services business."


Apple and Google are, however, definitely interested in "participating" in the fintech space – with the payments area "critical" when it comes to digital disruption.

"But that’s at the level of customer interface rather than at the level of the rails that actually run the payments system," Mr Perham said.

"So I’ve got no doubt that Apple’s got big aspirations and obviously a lot of cash to do whatever they like, but in terms of the next evolution of change, I don’t see that coming so much from Apple and Google."

Mr Perham said he is confident the top five Australian banks will still be around in 20 years' time.

"Personally, I don’t see us being replaced. [The rise of fintech is] more about partnering," he said. "I’d be very, very surprised if the largest five banks in Australia aren’t the largest five banks in 20 years’ time."

Read more:

Australian Ethical first-half profit up 172%

Latin America offers investors a 'different flavour’

GBST extends partnership with CLSA

Australians wary of stock market: MLC

Inflation targeting has failed, says AB


Big banks 'won't be replaced', says Macquarie
investordaily image
ID logo

related articles

promoted stories

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.