Ann: Market Update, page-67

Unless you still talk to your bank over the phone or send them faxes, I don't think this is correct. All banks have a huge focus on technology. Retail focused banks invest hundreds of millions in their core banking technology to allow better interaction with customers - stuff like better ATMs, internet banking, mobile apps, online loan applications etc. They all have sophisticated internal CRM systems to track customers, figure out new products, which customers might be interested in them etc. They've all just rolled out the NPP. There are now banking franchises in Australia that have basically no branches (ING, macquarie) and serve their customers entirely via the internet. On the merchant / investment banking side, they invest large sums in computerised trading and investment tools.

All banks also spend large sums on creating / modifying technology to deal with their compliance (eg CBA spend an EXTRA $125M last year disallowed/business/banking-and-fin...prevent-financial-crimes-20170809-gxs7ok.html)

The executives who roll out successfully technology initiatives get rewarded. A recent "star hire" for an Australian bank used to work at google - and got paid more than the CEO in their first year.

Meanwhile NAB is "parting ways" with 6,000 people with old banking skills and getting in 2000 people with "technology skills". disallowed/business/banking-and-fin...-it-announces-66b-profit-20171102-gzd3tc.html

On the specific compliance issue, re the record keeping requirements around text messages, at this stage Norwood's understanding of the market is that it remains an unsolved problem from an easy to implement and use technology point of view, and a large number of banks in the Europe and the US are technically non compliant with the requirement to store texts to customers. The way they deal with it is to simply ban texting clients.