From BankingDay: PEXA ramps up its opposition to...

From BankingDay:


PEXA ramps up its opposition to interoperability
28 November 2023

Despite this, last week PEXA chief customer and commercial officer Les Vance said the trial confirmed that “interoperability is far more complex to design, execute and build than was presented and assumed at the start”.

Vance said: “The original benefits were significantly overstated and the risk, costs and adverse impacts for stakeholders are significantly higher than represented.

“We remain of the view that the policy is flawed and that the pilot transaction provides a suitable point, still early in the overall program, to have a proper review of the policy.”

Vance also cited commentary from the Australian Banking Association that the interoperability program would not meet banks’ requirements.

The ABA told Banking Day: “Our support for the program is strictly contingent on e-conveyancing transactions under interoperability being substantively the same as those under a non-interoperable framework – that is, customers having access to the same levels of functionality.

“It is not clear to the ABA that this can be achieved under the current framework. ARNECC themselves have stated they are not the appropriate form for detailed information about end-to-end settlement flows and impacts to be developed and shared.

“For banks and borrowers, development of interoperability and financial settlement are inextricably linked and must be considered together.”