The banking sector is at risk of further regulation if instances of badservice and badadvice continue, MyState Limited chairman Miles Hampton has warned.
Mr Hampton noted the “criticism that has engulfed the banking and wealth management industry” in his address to the Tasmanian-based lender’s annual meeting in Hobart.
“It appears that significant numbers of customers ofsome industry participants have suffered from poor service and, worse still, poor advice,” Mr Hampton said.
“This does not reflect well on the sector and we face the risk of greater regulation if it continues.”
More regulation would potentially push up costs and risk to lenders, while continued controversy could push customers into the arms of agile new market players.
Mr Hampton said MyState remained vigilant about what he called “conduct risk”.
“ …whilst I cannot say it will never happen here, I can say that we recognise the risk and constantly monitorour business to minimise the possibility of us having similar issues to those thathave impacted some of our larger competitors,” he said.
Mr Hampton also noted the emergence of new digital business models and players in the banking and wealth management sector, known as fintech.
“There is no doubt that the traditional banking and wealth management business models will be impacted as others seek to take market share from us,” hesaid.
“Our challenge is to monitor, to respond where appropriate, and, from time to time, be prepared to be an innovator ourselves.”
He said he was confidentMyState was continuing to build a stronger business.
MyState grew market share during 2015-16, achieving 8.7 per cent loan book growth, to $3.9 billion.
Deposits were up 8.9 per cent to $2.7 billion.
The company’s statutoryprofit after income tax fell by 12.9 perper cent to $28.3 million.
Underlying net profit after tax was up 4.5 per cent to $31.1 million.
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