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What’s Driving the New Revolution In Australian Banking?

By 7 May 2020March 26th, 2023No Comments

Our world is becoming more globally interconnected and this is having a profound effect on our money – how we pay for things, how we get paid for things, the speed at which this happens and the the price we pay.

Depending on which social commentator you listen to, we are at the start of either a third or fourth industrial revolution where the power of new technology-enabled platforms is disrupting traditional supply chains and this is particularly true of the banking industry.

Looking back, the first industrial revolution was made possible by the coal powered steam engine which disrupted countless industries and led to population growth and massive prosperity. The second industrial revolution arrived with the first telephone networks and centralised power distribution, transforming how we communicate, live and work.

Today, just as our sources and distribution of power are changing, technology and globally integrated networks are driving another major shift and this is having a huge impact on our money.

Globally, fintech start-ups such as Rapyd, Kabbage and Adyen have attracted massive investment as they leverage new technology and importantly, new financial platforms to deliver innovative banking solutions which lower the cost and increase the speed of how we do business.

Here in Australia, the Reserve Bank has introduced the New Payments Platform (NPP). Incredibly, this is the first new platform, or “set of rails”, in 25 years and promises a whole new wave of innovation in how we pay and get paid for our goods and services.

So just like the steam engines of the first industrial revolution, major infrastructure like the NPP allows companies such as Azupay to build financial solutions which improve the speed and security, and lower the cost of moving our money which can have a big effect on our lives.

And with the advent of new Open Banking laws and the arrival of neo banks like 86400 and Judo Bank, Australia’s banking industry is ripe for a revolution.

I’d love to hear your thoughts in the comments. In Australia we’re notoriously apathetic when it comes changing banks. But on the other hand we’re rapid adoptors of new banking technologies. Has technology changed the way you pay and get paid these days? What new technology would you like to see adopted by your bank? Would you consider switching to a neo bank?