In a report titled Future of Financial Services, the result of an 18-month partnership between global financial services leaders, innovators and regulators, it was revealed that Australia is in the midst of a critical phase of evolution that must be embraced, with cyber-security and digital disruption at the forefront.
Joel Lipman, Deloitte Australia financial services innovation lead, stressed that Australia is currently seen as a “soft target” in regards to cyber-security, emphasising the need to build agility, responsiveness and resilience to further safeguard the sector from potential threats.
“To do this for customers, the pressure points are the need to rebuild trust, and deliver simplicity and value,” said Mr Lipman.
'Future-proofing' the nation is not enough, he added: “It is about embracing the future”, and that education of financial institutions is vital.
Mr Lipman called upon fintechs to support the sector and attract global suitors to enter the Australian market, declaring 2015 a “watershed year for Australian enterprises to rise to the challenges of digital business".
Rick Porter, national financial services leader for Deloitte, added, “It is a critical moment for Australia and the financial services sector as the country reaches a point of inflection, transitioning from a product to a services economy."
Mr Porter stated that as financial institutions gear up to grow their own fintech capability, issues of cyber-crime and regulation are rife.
"When it comes to cyber-crime and regulation, increasing digitisation is attracting greater criminal activity, as well as corresponding scrutiny from regulators and government agencies," he said.
Jesse McWaters of the World Economic Forum, lead author of the original future of financial services report, has visited Australia to provide insight into the report’s findings, and further the partnership with Deloitte in educating financial institutions.