Regulatory issues curbing investment in payments, Ullmer says
(15 March 2006 – Australia) The ability of Australian banks to invest in improving the experience of the customer in the payments area have been seriously curtailed by the amount of time and money spent on meeting regulatory requirements, according to National Australia Bank director of Finance and Risk, Michael Ullmer.
Speaking at an ABA-Visa Payments System conference, Ullmer said regulatory requirements addressing Basel II, IFRS, Sarbanes Oxley, FSRA and Anti Money Laundering had "knocked future investments in the payments system off the project slate".
Ullmer tabled a number of issues in the payments space, such as how existing participants might receive an adequate return on historical investments and how new entrants might pay their way.
He said ensuring system stability and developing payments policy and access arrangements needed to be reviewed as did the appropriate roles of the RBA and ACCC in determining interchange access arrangements.
Ullmer said an independent review of these issues was one possible way forward.
"If the review route is to be followed, the focus in my view should be: what can we do better in the future? Are there lessons to be learned from others offshore or from our own experiences to date?"
Ullmer tabled a number of issues in the payments space, such as how existing participants might receive an adequate return on historical investments and how new entrants might pay their way.
He said ensuring system stability and developing payments policy and access arrangements needed to be reviewed as did the appropriate roles of the RBA and ACCC in determining interchange access arrangements.
Ullmer said an independent review of these issues was one possible way forward.
"If the review route is to be followed, the focus in my view should be: what can we do better in the future? Are there lessons to be learned from others offshore or from our own experiences to date?"
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