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Members of Experteq’s executive team recently attended an American Chamber of Commerce event, which discussed international standards and national interests in Australia with APRA’s Wayne Byres, and was hosted by Dibbs Barker.
Some key learnings included:
- Hosting of core banking platforms in the Cloud.
When asked if APRA sees banks hosting core banking platforms in the Cloud in the future, Wayne responded that APRA does not object to this, however, APRA’s duty first and foremost is protecting the community – and when organisations are contemplating a move to Cloud they should consider cybersecurity and risk from a data perspective.
- Shift away from international standards.
International standards regarding quality, safety and efficiency “make things work” for the industry.
However, growing nationalism, protectionism and domestic interests are driving a global shift away from international standards. While the GFC drove global cooperation around international standards in financial services – specifically Basel III – consensus has become difficult in an increasingly fragmented and unstable environment.
- Australian standards are high.
Australia’s approach has always been to apply higher levels of safety than those determined by Basel III. Australia’s high standards ensure that we can deliver: stable financial systems; access to international markets; and high credit and trade ratings internationally. Overdelivering on standards will be APRA’s continued strategy.
- FinTechs versus institutions?
A subject of industry debate is APRA’s position on Open Data, FinTechs and financial institutions in today’s highly competitive environment.
Newcomers such as FinTechs offer innovative technology that can be safer than incumbent’s legacy systems. However, the key issue of cyber security remains. As result, APRA currently does not advocate for or against Open Data.