Fintech a vertical integration disruptor – ASIC
Vertical integration, particularly with respect to the major banks, is likely to be eroded by financial service technology, according to Australian Securities and Investments Commission (ASIC) chairman, Greg Medcraft.
Giving evidence before Senate Estimates, Medcraft said he believed the banks were starting to realise that owning something and cross-selling was probably not a viable strategy anymore.
Asked by Tasmanian Green Senator, Peter Whish-Wilson whether vertical integration was being addressed in line with the recommendations of the Murray Review, Medcraft said he believed progress was being made.
Whish-Wilson also asked whether the financial services technology changes had been a factor in ANZ’s decision to exit some of its wealth management business.
“I think the market will reshape banking – and the market includes things like the crowd and digital disruption,” the ASIC chairman said.
“Things are moving much faster. You are already seeing the sale of wealth management,” he said. “The point is that, these days, I do not necessarily need to own something to actually offer the best product to my customer.”
Recommended for you
The Financial Advice Association Australia has appealed to licensees to urgently update their FAR records as hundreds of advisers are set to depart by the end of the year.
Demand for robo-advice tools is rising, a report has shown, but this is occurring simultaneously with rising demand for professional face-to-face advice.
ASIC has released the results of the latest financial adviser exam, held in November 2025.
Winners have been announced for this year's ifa Excellence Awards, hosted by Money Management's sister brand ifa.
