1 00:00:06,360 --> 00:00:08,600 Speaker 1: Welcome to the Fear and Greed Business Interview. I'm sure 2 00:00:08,600 --> 00:00:12,400 Speaker 1: and Alma, it's probably inevitable. But as we shift increasingly 3 00:00:12,440 --> 00:00:16,320 Speaker 1: into a world of digitalization and AI, bank customers are 4 00:00:16,360 --> 00:00:19,400 Speaker 1: wanting more of a personal touch, and that's particularly true 5 00:00:19,520 --> 00:00:22,599 Speaker 1: for small and medium sized businesses. My guest today is 6 00:00:22,600 --> 00:00:24,840 Speaker 1: the leader of a challenger bank operating in a space 7 00:00:24,920 --> 00:00:28,080 Speaker 1: dominated by the Big four. Bank of Sydney was founded 8 00:00:28,080 --> 00:00:30,000 Speaker 1: back in two thousand and one and as it's grown 9 00:00:30,080 --> 00:00:34,559 Speaker 1: has increased its focus on SME clients. Milos Sulicich is 10 00:00:34,600 --> 00:00:36,680 Speaker 1: the CEO of Bank of Sydney, which works with Blue 11 00:00:36,720 --> 00:00:39,240 Speaker 1: Chip Communication. A great supporter of this podcast, he joins 12 00:00:39,240 --> 00:00:42,160 Speaker 1: me in the studio. Milos, welcome to Fair and Greed. 13 00:00:42,320 --> 00:00:43,000 Speaker 2: Thank you for having me. 14 00:00:43,040 --> 00:00:45,199 Speaker 1: Sean give me the elevator pitch on Bank of Sydney. 15 00:00:45,280 --> 00:00:47,519 Speaker 2: Bank of Sydney started in two thousand and one was 16 00:00:47,760 --> 00:00:50,320 Speaker 2: then called Laky Bank. It was set up by a 17 00:00:50,360 --> 00:00:53,920 Speaker 2: Greek Cypriot bank in two thousand and one and now 18 00:00:53,920 --> 00:00:58,040 Speaker 2: it is just a bank, foreign owned bank in Australia 19 00:00:58,040 --> 00:01:01,760 Speaker 2: operating principally in the SMB market. So we have a 20 00:01:01,760 --> 00:01:04,319 Speaker 2: lot of business lending on our books, but also a 21 00:01:04,360 --> 00:01:06,840 Speaker 2: lot of home lending which is attached to small businesses 22 00:01:06,840 --> 00:01:07,680 Speaker 2: across the country. 23 00:01:08,680 --> 00:01:14,760 Speaker 1: How does a challenger bank operate compete against the big four? 24 00:01:15,160 --> 00:01:18,160 Speaker 2: It's always hard operating against the big four. They really 25 00:01:18,200 --> 00:01:22,240 Speaker 2: are big banks in world terms. But from a small 26 00:01:22,280 --> 00:01:25,800 Speaker 2: banking point of view, we are focused on helping people 27 00:01:25,880 --> 00:01:30,080 Speaker 2: create genuine value. So we've got relationship bankers out in 28 00:01:30,120 --> 00:01:33,920 Speaker 2: the market who are working with their customers to help 29 00:01:33,959 --> 00:01:37,959 Speaker 2: their customers create value, looking after their customers in times 30 00:01:37,959 --> 00:01:40,800 Speaker 2: of need, and also looking after their customers when their 31 00:01:40,800 --> 00:01:42,840 Speaker 2: customers need something and see an opportunity. 32 00:01:43,080 --> 00:01:44,880 Speaker 1: Okay, can we just take a step back here, So 33 00:01:44,920 --> 00:01:47,720 Speaker 1: we're all very familiar with the big four banks there 34 00:01:47,800 --> 00:01:50,080 Speaker 1: are I mean you're a foreign owned bank as opposed 35 00:01:50,120 --> 00:01:52,400 Speaker 1: to a locally owned bank, right, Not that that really 36 00:01:52,400 --> 00:01:55,560 Speaker 1: matters that much, but all banks, when you have a 37 00:01:55,600 --> 00:01:59,280 Speaker 1: word bank attached to your name, you have the rules 38 00:01:59,280 --> 00:02:03,800 Speaker 1: and regulation that the regulator sets are as relevant to 39 00:02:03,840 --> 00:02:06,000 Speaker 1: you as they are to come off bank. Correct. So 40 00:02:06,200 --> 00:02:08,160 Speaker 1: I'm just thinking in terms of safety in that type 41 00:02:08,200 --> 00:02:08,480 Speaker 1: of thing. 42 00:02:08,639 --> 00:02:12,480 Speaker 2: Absolutely. So to get a banking license is really hard. 43 00:02:13,040 --> 00:02:15,720 Speaker 2: To maintain your banking licenses really hard. You have to 44 00:02:15,760 --> 00:02:19,560 Speaker 2: have strong capital ratio, so we've got a twenty percent 45 00:02:19,600 --> 00:02:22,600 Speaker 2: capital ratio. You have to have strong liquidity, you have 46 00:02:22,680 --> 00:02:26,280 Speaker 2: to have the best risk management systems in the country 47 00:02:26,320 --> 00:02:29,120 Speaker 2: in the world. We've got a very strong regulator in 48 00:02:29,160 --> 00:02:31,960 Speaker 2: Australia and OPERA and APRAA do a wonderful job of 49 00:02:32,000 --> 00:02:36,400 Speaker 2: regulating banks and keeping banks strong, and so we're all strong. 50 00:02:36,520 --> 00:02:39,880 Speaker 2: But competing for a small bank, competing against large banks, 51 00:02:39,919 --> 00:02:42,840 Speaker 2: you have to be different, and we see our difference 52 00:02:42,880 --> 00:02:46,679 Speaker 2: as being able to provide a strong relationship model to 53 00:02:47,560 --> 00:02:50,639 Speaker 2: our customers. So the bankers, we've got a very experienced 54 00:02:50,760 --> 00:02:52,960 Speaker 2: they've all been here a long time. They've all had 55 00:02:53,800 --> 00:02:56,480 Speaker 2: got a lot of scars on their back from things 56 00:02:56,520 --> 00:02:58,640 Speaker 2: that they had to do in the past with customers, 57 00:02:59,120 --> 00:03:01,200 Speaker 2: and they help their stomers through the good times and 58 00:03:01,240 --> 00:03:05,160 Speaker 2: the bad times. We've got a very very strong credit department. 59 00:03:05,160 --> 00:03:07,000 Speaker 2: As I said, the bank's been going in since two 60 00:03:07,040 --> 00:03:09,880 Speaker 2: thousand and mine. We've actually never suffered a loss a 61 00:03:09,880 --> 00:03:12,279 Speaker 2: credit loss in that time. 62 00:03:12,320 --> 00:03:13,800 Speaker 1: Never stuffered a credit love. 63 00:03:13,680 --> 00:03:18,360 Speaker 2: Ever suffered a credit loss. Because our credit department, in 64 00:03:18,400 --> 00:03:20,400 Speaker 2: my view, the best in the country. So they can 65 00:03:20,600 --> 00:03:24,720 Speaker 2: actually help customers structure a deal in the right way 66 00:03:24,720 --> 00:03:26,799 Speaker 2: and then smme customers structure a deal in the right 67 00:03:26,840 --> 00:03:30,040 Speaker 2: way that looks after the customer and looks after the 68 00:03:30,080 --> 00:03:31,760 Speaker 2: bank at the same time as well, so you can 69 00:03:31,800 --> 00:03:34,680 Speaker 2: be assured that if we're lending your money, we're confident 70 00:03:34,760 --> 00:03:36,320 Speaker 2: that you can pay it back, because you only want 71 00:03:36,320 --> 00:03:38,120 Speaker 2: to lend money to people that can pay it back. 72 00:03:39,200 --> 00:03:42,000 Speaker 1: This sounds very one on one and I'm trying to 73 00:03:42,000 --> 00:03:44,920 Speaker 1: put that in terms of AI and technology, which are 74 00:03:44,920 --> 00:03:46,680 Speaker 1: the big banks, particularly spending a lot of money on 75 00:03:47,440 --> 00:03:49,920 Speaker 1: Where do you sit? Where does Bank of Sydney sit 76 00:03:50,080 --> 00:03:54,200 Speaker 1: in terms of the need for personal relationships back by 77 00:03:54,200 --> 00:03:57,880 Speaker 1: technology as opposed to technology relationships back by personal. 78 00:03:58,440 --> 00:04:01,760 Speaker 2: So if you're going to have a a relationship lead bank, 79 00:04:01,920 --> 00:04:04,360 Speaker 2: you need to be cost effective and so having back 80 00:04:04,440 --> 00:04:08,000 Speaker 2: end technology and the best back end technology is paramount 81 00:04:08,200 --> 00:04:10,720 Speaker 2: because it can help take out back end cost. Now 82 00:04:10,760 --> 00:04:14,040 Speaker 2: we are right in the middle of doing the largest 83 00:04:14,040 --> 00:04:16,440 Speaker 2: project that we've ever done the bank in replacing a 84 00:04:16,520 --> 00:04:20,640 Speaker 2: core banking system and our internet and mobile technology as well. 85 00:04:21,200 --> 00:04:25,440 Speaker 2: So we need to have very strong customer facing technology 86 00:04:26,240 --> 00:04:28,720 Speaker 2: which has got some AI components to it as well, 87 00:04:28,760 --> 00:04:31,360 Speaker 2: because everything has got some AI component to it nowadays, 88 00:04:31,920 --> 00:04:34,800 Speaker 2: but also a very efficient and in our case will 89 00:04:34,800 --> 00:04:37,919 Speaker 2: be a cloud based core banking system, which means that 90 00:04:37,960 --> 00:04:42,080 Speaker 2: we remove a lot of the operational technology requirements from 91 00:04:42,120 --> 00:04:45,000 Speaker 2: us and that goes to our provider and they do 92 00:04:45,080 --> 00:04:48,720 Speaker 2: it at scale, so we get scale benefits while still 93 00:04:48,760 --> 00:04:52,400 Speaker 2: being a small bank. That's really critical because we have 94 00:04:52,480 --> 00:04:55,120 Speaker 2: to maintain we have to reduce our costs in the 95 00:04:55,160 --> 00:04:59,160 Speaker 2: back end, which is not really customer adding value, to 96 00:04:59,200 --> 00:05:01,200 Speaker 2: be able to add value to our customers at the 97 00:05:01,200 --> 00:05:03,960 Speaker 2: front end by having these experienced bankers and credit people 98 00:05:04,240 --> 00:05:06,320 Speaker 2: that they're able to talk to them and help them well. 99 00:05:06,320 --> 00:05:09,120 Speaker 1: I think is interesting. Three of the big four are 100 00:05:09,200 --> 00:05:12,920 Speaker 1: reported recently their growth in SME is I think it 101 00:05:13,000 --> 00:05:16,200 Speaker 1: was five six percent. Market was much much higher than that, 102 00:05:16,480 --> 00:05:19,320 Speaker 1: So it does seem that the challenger banks, it's a 103 00:05:19,360 --> 00:05:23,040 Speaker 1: big group, seemed to be growing market share as one. 104 00:05:23,080 --> 00:05:24,920 Speaker 1: I mean, obviously some will be doing well, some mon't 105 00:05:24,920 --> 00:05:27,480 Speaker 1: be doing so well. Actually better than those big four. 106 00:05:28,080 --> 00:05:32,400 Speaker 2: So our SME banking book grew by seventeen percent last year. 107 00:05:33,080 --> 00:05:36,400 Speaker 2: How do we do that. We actually increase the number 108 00:05:36,400 --> 00:05:39,680 Speaker 2: of our frontline bankers by about forty percent, So a 109 00:05:39,680 --> 00:05:42,880 Speaker 2: lot of investment in frontline bankers and credit people to 110 00:05:42,960 --> 00:05:46,039 Speaker 2: get out and meet more customers to be able to 111 00:05:46,040 --> 00:05:48,560 Speaker 2: do more business, and that was seventeen percent growth in 112 00:05:49,520 --> 00:05:51,680 Speaker 2: that part of the business last year. Twenty percent growth 113 00:05:51,680 --> 00:05:54,599 Speaker 2: in deposits as well. Have deposits in order to be 114 00:05:54,600 --> 00:05:56,799 Speaker 2: able to lend them money out, and we're one hundred 115 00:05:56,800 --> 00:05:59,200 Speaker 2: percent deposit funded banks, so we don't have any wholesale 116 00:05:59,200 --> 00:06:03,120 Speaker 2: funding in our funding stack, and so getting deposits is 117 00:06:03,160 --> 00:06:05,200 Speaker 2: important for us. So having people on the front line 118 00:06:05,279 --> 00:06:10,400 Speaker 2: talking to those customers who have money to deposit in 119 00:06:10,400 --> 00:06:11,760 Speaker 2: the bank so that we can then lend it out 120 00:06:11,800 --> 00:06:14,039 Speaker 2: to people who need to borrow what to see an opportunity. 121 00:06:14,440 --> 00:06:15,960 Speaker 1: I mean, I stay with me and we'll be back 122 00:06:15,960 --> 00:06:25,320 Speaker 1: in a minute. My guest this morning is Meli Silicitch, 123 00:06:25,640 --> 00:06:29,719 Speaker 1: CEO of Bank of Sydney. So clearly you know a 124 00:06:29,720 --> 00:06:33,480 Speaker 1: bit about SMEs. What are the biggest concerns for your 125 00:06:33,520 --> 00:06:34,440 Speaker 1: customers at the moment. 126 00:06:35,240 --> 00:06:37,400 Speaker 2: I think the biggest thing that customers are feeling at 127 00:06:37,400 --> 00:06:40,559 Speaker 2: the moment is uncertainty. So through the course of this year, 128 00:06:41,920 --> 00:06:45,480 Speaker 2: the election campaign effectively kicked off on the first of January. 129 00:06:45,560 --> 00:06:49,279 Speaker 2: Election campaigns always caused some uncertainty in people's in people's 130 00:06:49,320 --> 00:06:51,880 Speaker 2: mind and as we got through the election campaign. You 131 00:06:51,960 --> 00:06:53,880 Speaker 2: see a lot of uncertainty now coming out of the 132 00:06:54,000 --> 00:06:56,200 Speaker 2: US with tariffs and those sorts of things as well, 133 00:06:56,720 --> 00:06:59,680 Speaker 2: and that's the thing that's causing our customers to think 134 00:07:00,240 --> 00:07:02,400 Speaker 2: hard about what they do. Uncertainty is not a good 135 00:07:02,440 --> 00:07:06,640 Speaker 2: thing for business because uncertainty gives you a question mark 136 00:07:06,680 --> 00:07:08,719 Speaker 2: over what you're going to invest in. Do I invest? 137 00:07:08,760 --> 00:07:11,520 Speaker 2: Do I not invest? People are looking for more certainty, 138 00:07:11,560 --> 00:07:16,800 Speaker 2: so from our politicians locally here and internationally. They're looking 139 00:07:16,840 --> 00:07:18,680 Speaker 2: for more certainty to be able to give them the 140 00:07:18,760 --> 00:07:22,200 Speaker 2: confidence to invest. Business is actually going quite well for 141 00:07:22,280 --> 00:07:24,320 Speaker 2: most of our customers. In fact, all of our customers 142 00:07:24,320 --> 00:07:26,600 Speaker 2: are going really well. We've got a lot of developers 143 00:07:26,640 --> 00:07:29,800 Speaker 2: on the books who are building housing that's going really well. 144 00:07:29,800 --> 00:07:32,360 Speaker 2: We've got retail customers on our books and their businesses 145 00:07:32,360 --> 00:07:34,239 Speaker 2: are going really well as well. But they're all looking 146 00:07:34,280 --> 00:07:38,160 Speaker 2: for certainty in the economic and political environment. 147 00:07:38,360 --> 00:07:41,119 Speaker 1: What about the interest rate cut recently and the hopes 148 00:07:41,160 --> 00:07:44,239 Speaker 1: for a couple more Does that make much of a difference. 149 00:07:44,320 --> 00:07:46,600 Speaker 2: Well, that gives people more confidence, doesn't it, because they 150 00:07:46,640 --> 00:07:49,400 Speaker 2: can borrow more. They've got a bit more leeway between 151 00:07:49,440 --> 00:07:52,640 Speaker 2: what their outgoings are in terms of their interest costs 152 00:07:52,640 --> 00:07:55,560 Speaker 2: and their principal repayments as well, means that they might 153 00:07:55,600 --> 00:07:57,960 Speaker 2: have a bit more left over to invest in some 154 00:07:58,040 --> 00:08:00,680 Speaker 2: more staff. I mean, small business have been sort of 155 00:08:01,320 --> 00:08:04,960 Speaker 2: really watching their costs really tightly over the last couple 156 00:08:05,000 --> 00:08:08,120 Speaker 2: of years. In particular, we've had a very big inflation 157 00:08:08,600 --> 00:08:10,520 Speaker 2: spike comes through over the last few years. Now that's 158 00:08:10,560 --> 00:08:14,000 Speaker 2: eased off, but the cost of doing things are still 159 00:08:14,000 --> 00:08:16,680 Speaker 2: more expensive than it was a few years ago, so 160 00:08:16,760 --> 00:08:19,360 Speaker 2: people have watched their costs. So interest rates coming down 161 00:08:19,400 --> 00:08:22,440 Speaker 2: a really good thing for small businesses in particular, it 162 00:08:22,440 --> 00:08:24,440 Speaker 2: gives them more confidence. It gives the more scope to 163 00:08:24,520 --> 00:08:26,880 Speaker 2: invest and look for those opportunities that they've been looking for. 164 00:08:27,040 --> 00:08:29,600 Speaker 1: You mentioned that you've got a bunch of construction customers. 165 00:08:29,760 --> 00:08:33,120 Speaker 1: It's surprising then you haven't had any credit losses. Obviously 166 00:08:33,160 --> 00:08:36,120 Speaker 1: you're risk team does a good job, but is that 167 00:08:36,200 --> 00:08:38,000 Speaker 1: sector getting back on his feet yet. 168 00:08:38,960 --> 00:08:43,000 Speaker 2: There is a huge demand for housing, a huge demand 169 00:08:43,000 --> 00:08:44,840 Speaker 2: for housing in the country. The one thing that we 170 00:08:44,960 --> 00:08:48,439 Speaker 2: can't get enough of, we'll build enough of is housing. 171 00:08:49,080 --> 00:08:52,600 Speaker 2: And so the customers that we deal with now, our 172 00:08:52,640 --> 00:08:56,400 Speaker 2: business model has been built on working with people who 173 00:08:56,440 --> 00:08:59,679 Speaker 2: are doing small developments small developments, small developments and we 174 00:08:59,760 --> 00:09:02,800 Speaker 2: grow with them or they grow with us. And so 175 00:09:03,480 --> 00:09:05,640 Speaker 2: we know the customers that we deal with, and we've 176 00:09:05,640 --> 00:09:08,240 Speaker 2: got long term customers said we've had, We've got some 177 00:09:08,320 --> 00:09:10,160 Speaker 2: great bankers that have been with us for a long 178 00:09:10,200 --> 00:09:13,040 Speaker 2: period of time and they grow with their customers and 179 00:09:13,080 --> 00:09:18,520 Speaker 2: that helps us. So we understand the people and their 180 00:09:18,559 --> 00:09:22,079 Speaker 2: businesses and what they're investing in. It also helps our 181 00:09:22,160 --> 00:09:24,800 Speaker 2: clients because they get the confidence from us as well 182 00:09:24,840 --> 00:09:27,560 Speaker 2: that they're not sort of going into something that's going 183 00:09:27,600 --> 00:09:29,040 Speaker 2: to stretch them too much as well. 184 00:09:29,400 --> 00:09:32,400 Speaker 1: What about the regulatory environment? So sometimes you hear from 185 00:09:32,400 --> 00:09:35,160 Speaker 1: the challenger banks that it's a bit unfair the big 186 00:09:35,200 --> 00:09:37,079 Speaker 1: banks get a better ride. Now you talk to the 187 00:09:37,120 --> 00:09:38,760 Speaker 1: big banks and they're saying, well, some of the apple 188 00:09:38,800 --> 00:09:40,880 Speaker 1: regulations make it actually hard for us to lend them 189 00:09:41,040 --> 00:09:44,760 Speaker 1: certain areas of the market. You don't do a hosshile funding, 190 00:09:44,800 --> 00:09:46,960 Speaker 1: so you're getting all your funding off deposits. So there's 191 00:09:47,080 --> 00:09:49,800 Speaker 1: sort of comparative advantage for Bank of Sydney. But what 192 00:09:50,000 --> 00:09:52,640 Speaker 1: is the regulatory environment like this? Is it a level 193 00:09:52,640 --> 00:09:53,200 Speaker 1: playing field? 194 00:09:53,280 --> 00:09:55,720 Speaker 2: You think we don't believe it's a level playing field. 195 00:09:56,440 --> 00:10:01,640 Speaker 2: The regulatory environment artificially make life tougher for small banks. 196 00:10:02,559 --> 00:10:07,280 Speaker 2: The number of regulations and rules and laws that all 197 00:10:07,360 --> 00:10:11,520 Speaker 2: banks have to comply with are massive, huge, and that 198 00:10:11,520 --> 00:10:15,520 Speaker 2: that weighs itself heavier on small banks. Larger banks have 199 00:10:15,640 --> 00:10:19,160 Speaker 2: departments of people looking after one small piece of regulation. 200 00:10:19,200 --> 00:10:21,760 Speaker 2: There's a smaller bank. We have to be sort of 201 00:10:21,880 --> 00:10:23,920 Speaker 2: jack of all trades in terms of regulations a bit 202 00:10:24,000 --> 00:10:26,199 Speaker 2: and be across the whole, the whole lot of regulation. 203 00:10:27,160 --> 00:10:31,760 Speaker 2: It's an unusual environment where you have smaller organizations in 204 00:10:32,040 --> 00:10:37,040 Speaker 2: a a in an industry being penalized with heavier capital 205 00:10:37,040 --> 00:10:41,680 Speaker 2: weights than the larger organizations. So the regular environments actually 206 00:10:41,679 --> 00:10:46,040 Speaker 2: tipped against smaller banks. So the large banks get an 207 00:10:46,080 --> 00:10:50,040 Speaker 2: implicit government guarantee on their funding, they get lower risk 208 00:10:50,080 --> 00:10:53,080 Speaker 2: weights on their on their capital, and the two key 209 00:10:53,120 --> 00:10:56,120 Speaker 2: things you need in banking is capital and funding. And 210 00:10:56,160 --> 00:10:59,240 Speaker 2: so we think the environment's tipped a little bit too 211 00:10:59,240 --> 00:11:00,680 Speaker 2: far against this smaller banks. 212 00:11:00,760 --> 00:11:02,280 Speaker 1: Do you expect that to change it all? 213 00:11:02,559 --> 00:11:05,000 Speaker 2: Well, there's a current review going on the Council of 214 00:11:05,000 --> 00:11:08,080 Speaker 2: Financial Regulators with the ahrib'll c are doing a review 215 00:11:09,559 --> 00:11:12,040 Speaker 2: into small banks at the moment in the small banking environment. 216 00:11:12,720 --> 00:11:14,760 Speaker 2: That review is due to be given to the Treasurer 217 00:11:14,800 --> 00:11:16,840 Speaker 2: in the middle of this year, so that's a month 218 00:11:16,920 --> 00:11:19,320 Speaker 2: or so away and we understand there will be some 219 00:11:19,400 --> 00:11:22,079 Speaker 2: recommendations come out of that. So we're waiting for the 220 00:11:22,120 --> 00:11:25,840 Speaker 2: outcome of that review. We've made some we and the 221 00:11:25,920 --> 00:11:29,960 Speaker 2: ABA and other banks have made representations to that review 222 00:11:30,000 --> 00:11:33,720 Speaker 2: to look to see if something can be done to 223 00:11:33,760 --> 00:11:36,720 Speaker 2: help make the environment for small banks better. And you 224 00:11:36,720 --> 00:11:39,840 Speaker 2: have to remember that the MOSS is sort of four 225 00:11:39,920 --> 00:11:42,480 Speaker 2: or five large banks in Australia. There's another fifty odd 226 00:11:42,520 --> 00:11:45,920 Speaker 2: small banks in Australia. The small banks have driven some 227 00:11:46,000 --> 00:11:51,400 Speaker 2: of the innovation. The core product in Australian banking is 228 00:11:51,440 --> 00:11:54,080 Speaker 2: an offset mortgage or mortgage or an offset account that 229 00:11:54,200 --> 00:11:57,080 Speaker 2: was developed by a small bank and released by a 230 00:11:57,080 --> 00:11:59,880 Speaker 2: small bank in the early nineteen nineties as to find 231 00:11:59,880 --> 00:12:04,160 Speaker 2: a competitive advantage. It's unique to Australia, right and it's 232 00:12:04,200 --> 00:12:07,920 Speaker 2: one of our Everybody in Australia that has a mortgage 233 00:12:07,960 --> 00:12:11,160 Speaker 2: gets one with an offset account because it gives you flexibility. Now, 234 00:12:11,160 --> 00:12:13,000 Speaker 2: if it wasn't for small banks, we wouldn't have that, 235 00:12:13,160 --> 00:12:15,520 Speaker 2: and so we believe that the innovation that could be 236 00:12:15,559 --> 00:12:19,680 Speaker 2: provided by small organizations is wonderful for the Australian consumer. 237 00:12:19,760 --> 00:12:21,480 Speaker 2: But we just need to have some of those shackles 238 00:12:21,520 --> 00:12:22,240 Speaker 2: lifted a little bit. 239 00:12:22,400 --> 00:12:24,120 Speaker 1: Mel Us, thank you very much for talking to Fear 240 00:12:24,160 --> 00:12:24,520 Speaker 1: and Greed. 241 00:12:24,880 --> 00:12:26,160 Speaker 2: Thank yousponderful being here. 242 00:12:26,280 --> 00:12:29,000 Speaker 1: That was Melos Sulasitch, CEO of Bank of Sydney. This 243 00:12:29,080 --> 00:12:31,240 Speaker 1: is the Fear and Greed Business Interview. Join us every 244 00:12:31,280 --> 00:12:34,439 Speaker 1: morning for the full episode of Fear and Greed. Business 245 00:12:34,480 --> 00:12:39,880 Speaker 1: news you can use. I'm Sean Elmer. Enjoy your day.