Bank bosses face grilling over AI, scams and practices
Chief executives of Australia’s big four banks are locked in a debate in parliament and it is likely the newest boss will face the most pressure.
The use of artificial intelligence, surcharges, anti-fraud practices and more will be on the agenda when leaders of Australia’s biggest banks arrive in Canberra for committee hearings.
The re-elected Albanian government continues its practice of inviting more important lending executives to annual talks.
On Tuesday, Commonwealth boss Matt Comyn and Westpac’s Anthony Miller will face the music before ANZ’s Nuno Matos and NAB’s Andrew Irvine take to the hot seat.
Based on the latest evidence, Mr Matos, the Portuguese manager who took over in May, may have even more reason to sweat.
In September, the financial regulator asked the courts to fine the Melbourne-based bank $240 million for misuse of services provided to 65,000 customers and inaccurate reporting of bond trading data to the government.
ASIC chairman Joe Longo said the bank had a history of non-compliance and had betrayed Australia’s trust.
Although the fine is the highest in ASIC’s history, Ed Husic, chairman of the committee the banks will face this week, believes the banks got off lightly.
“It should have been higher,” the Labor MP told AAP.
Mr Husic said this issue would be challenging, but other areas could be addressed in a more amicable manner.
“At best, the committee will provide an environment where the committee can investigate the issues and exchange views between the banks and the committee,” he said.
“From a lot of customers’ perspective, the impact of the surcharge and the value of their money not being eroded by the fees and the surcharge. That’s really important.
“Fraud and fraud protection, the way banks manage that and fraud, and the way the fraud framework is implemented.
“And I think it’s quite different from other hearings, the focus on AI, given that banks are really increasing the use of AI.”
Mr Husic said he was pleased that senior banking leaders did not lose the Canberra trip to more junior executives.
“The chairman of the four major banks will attend the meeting,” he said.
“It’s a sign of how seriously they take the committee, and of course the fact that the committee has resumed investigations is a sign that the government also takes seriously the transparency that this process offers.”
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