1 00:00:00,200 --> 00:00:02,759 Speaker 1: Now, if you are one of the people who firmly 2 00:00:02,800 --> 00:00:04,760 Speaker 1: believes that open banking is going to fix the whole 3 00:00:04,800 --> 00:00:06,680 Speaker 1: banking system, I've got some good news for you because 4 00:00:06,680 --> 00:00:09,280 Speaker 1: there's a firm called Revolute that has applied to become 5 00:00:09,280 --> 00:00:11,600 Speaker 1: a registered bank in New Zealand and open banking is 6 00:00:11,640 --> 00:00:15,000 Speaker 1: what they do. Massive university banking expert Clear Matthews is 7 00:00:15,000 --> 00:00:18,319 Speaker 1: with us. Now, Hey, Claire, Hi, Heather. Are they a 8 00:00:18,320 --> 00:00:18,920 Speaker 1: game changer? 9 00:00:21,880 --> 00:00:23,880 Speaker 2: Well, it all depends where you sit on the open 10 00:00:23,960 --> 00:00:28,000 Speaker 2: banking issue. As you suggest, Potentially they are, but the 11 00:00:28,080 --> 00:00:31,479 Speaker 2: reality is they are already operating in New Zealand. All 12 00:00:31,640 --> 00:00:34,120 Speaker 2: the license would mean is that they would be operating 13 00:00:34,920 --> 00:00:37,960 Speaker 2: under slightly different regulations and would be able to use 14 00:00:38,000 --> 00:00:40,519 Speaker 2: the name bank, so they'd be able to describe themselves 15 00:00:40,520 --> 00:00:43,680 Speaker 2: as Resolute Bank and talk about what they do as banking, 16 00:00:43,880 --> 00:00:46,080 Speaker 2: which they can't do at the moment, despite the fact 17 00:00:46,120 --> 00:00:48,880 Speaker 2: that what they are doing is effectively banking. 18 00:00:48,960 --> 00:00:51,040 Speaker 1: Yeah. I want to come to the open banking thing 19 00:00:51,080 --> 00:00:53,599 Speaker 1: with you, but on them actually being able to call 20 00:00:53,640 --> 00:00:57,800 Speaker 1: themselves a bank, that would probably force some people at 21 00:00:57,880 --> 00:00:59,760 Speaker 1: least have some kind of you know, it would clear 22 00:00:59,800 --> 00:01:02,680 Speaker 1: her in their head, wouldn't they wouldn't it. 23 00:01:02,800 --> 00:01:05,960 Speaker 2: Absolutely, It's a perception thing as much as anything else, 24 00:01:06,920 --> 00:01:09,319 Speaker 2: because they would be then a bank, just like Kiwi 25 00:01:09,319 --> 00:01:12,479 Speaker 2: Bank or Westpac or any of the other banks, whereas 26 00:01:12,480 --> 00:01:15,280 Speaker 2: at the moment they have to describe themselves accurately as 27 00:01:15,319 --> 00:01:17,640 Speaker 2: a non bank financial institution. It's a bit of a 28 00:01:17,680 --> 00:01:22,040 Speaker 2: mouthful and it just carries a slight dodgy for the public. 29 00:01:22,160 --> 00:01:23,639 Speaker 1: Yeah, so I wold hope. 30 00:01:23,520 --> 00:01:25,760 Speaker 2: It doesn't sound dodgy, but it doesn't sound quite as 31 00:01:25,760 --> 00:01:26,320 Speaker 2: good as a bank. 32 00:01:26,440 --> 00:01:28,200 Speaker 1: Yeah, that's a better way of putting it. Clear. This 33 00:01:28,240 --> 00:01:30,880 Speaker 1: is why you're the expert and I'm not. How do 34 00:01:30,880 --> 00:01:32,920 Speaker 1: you write their chances of being able to become a bank? 35 00:01:35,160 --> 00:01:37,600 Speaker 2: Well, one would assume that having made the decision to apply, 36 00:01:37,800 --> 00:01:40,520 Speaker 2: that they've checked what the criteria and made sure they've 37 00:01:40,560 --> 00:01:42,520 Speaker 2: got all their ducks lined up so that they will 38 00:01:42,560 --> 00:01:45,640 Speaker 2: meet the criteria. But it isn't a fad a complete 39 00:01:45,800 --> 00:01:48,760 Speaker 2: it is something. It is an application. The Reserve Bank 40 00:01:48,800 --> 00:01:50,480 Speaker 2: has to be satisfied that they do meet all the 41 00:01:50,480 --> 00:01:55,280 Speaker 2: criteria and that they are suitable to be a registered bank. 42 00:01:55,400 --> 00:01:59,120 Speaker 2: So I would anticipate that they would get their license, 43 00:01:59,680 --> 00:02:02,600 Speaker 2: get their registration. But it's just not a guarantee. 44 00:02:02,760 --> 00:02:05,400 Speaker 1: Okay, So on the open banking thing, are you a 45 00:02:05,440 --> 00:02:07,320 Speaker 1: skeptic on it? I'm a skeptic, are you? 46 00:02:08,800 --> 00:02:13,400 Speaker 2: I am rather a spected. I understand how it operates largely, 47 00:02:13,960 --> 00:02:17,000 Speaker 2: but I haven't yet seen the benefits. And more importantly, 48 00:02:17,040 --> 00:02:20,400 Speaker 2: I haven't actually seen a model that makes it clear 49 00:02:20,560 --> 00:02:25,000 Speaker 2: how it's going to generate a sufficient profit or sufficient 50 00:02:25,040 --> 00:02:28,120 Speaker 2: revenue for it to be profitable for those that are 51 00:02:28,160 --> 00:02:29,240 Speaker 2: providing those services. 52 00:02:29,680 --> 00:02:32,000 Speaker 1: And do you believe that it is going to be 53 00:02:32,120 --> 00:02:34,640 Speaker 1: the game changer that you or I need in order 54 00:02:34,680 --> 00:02:37,920 Speaker 1: to I don't know, switch banks willing nilly and you 55 00:02:38,720 --> 00:02:40,520 Speaker 1: bring the profits down and change everything. 56 00:02:42,000 --> 00:02:44,520 Speaker 2: Yeah. I'm not persuaded that it's going to be that 57 00:02:44,600 --> 00:02:47,240 Speaker 2: sort of game painter. It will be good for some people, 58 00:02:47,280 --> 00:02:50,720 Speaker 2: and it will make a difference. I'm struggling to see 59 00:02:50,720 --> 00:02:52,160 Speaker 2: that it will be a game changer. 60 00:02:52,360 --> 00:02:54,880 Speaker 1: Yeah. Okay, Claire, thanks very much, really appreciate it. Have 61 00:02:54,880 --> 00:02:57,440 Speaker 1: a lovely weekend. That's doctor Clare Matthews, who's a massive 62 00:02:57,480 --> 00:03:01,640 Speaker 1: university banking expert. For more from Hither Duplessy Allen Drive, 63 00:03:01,800 --> 00:03:05,240 Speaker 1: listen live to News Talk Set B from four pm weekdays, 64 00:03:05,320 --> 00:03:07,480 Speaker 1: or follow the podcast on iHeartRadio.