NZ on the verge of a cataclysmic financial service change
Auckland - Facebook’s Libra currency will put New Zealand on the verge of a cataclysmic change in the way Kiwis think about financial services, FintechNZ general manager James Brown says.
But will the big banks in New Zealand be ready when the Libra currency launches next year, he says.
“We want changes to banking and Libra will be a solution for many people.
“But it is timely as the Reserve Bank recently posted concerns about a cashless society and vulnerable people who are not e-connected. Libra transactions will either be free or have very low fees, as it’s targeted at basic entry smartphones.
“It’s got scale and Facebook has 28,000 data points on each of its customers which does raise questions about security and privacy but it’s on blockchain, so it is easily protected. But it will be the big topic at the New Zealand cyber security summit in Wellington later this year.
“It has taken years for a country such as the UK to reach a point of adoption around open banking. Australia is about to go live. However, with the launch of Libra, that could all be superseded before it even begins.
“Not having a clear national strategy around fintech here in New Zealand will impact our ability to deliver a positive outcome for consumers around open banking. We believe it needs to be a conversation around open data.
“It is really great to see the steps ANZ has taken to try to create an internal open banking framework which could even be adopted as industry standards. We are looking to have all banks in New Zealand engaged in our open ecosystem advisory group so we can create a competitive, transparent and inclusive ecosystem.
“After all, Facebook's new cryptocurrency should resonate globally as billions of people around the world are shut out of banking and face punitive fees for simple transactions, like transferring money to their loved ones.
“The US company's drive to remake global finance through Libra currency from next year will be backed by real-world currencies and a consortium of companies.
“Companies rooted in traditional finance such as Visa and MasterCard have joined from the start, predicting that Facebook's power will have enough potential to overcome any downside to their plans.
“Financial services should be worried as Facebook knows how to use data to achieve customer outcomes while large financial institutions may struggle.
“Currently if I wanted a $1000 increase on my credit card, I have to go through a whole process but with Libra I will be able to do it in the app which will be so much easier as it will be customer driven,” Brown says.
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Lisa was born in Auckland at the start of the 1970s, living in a small campsite community on the North Shore called Browns Bay. She spent a significant part of her life with her grandparents, often hanging out at the beaches. Lisa has many happy memories from those days at Browns Bay beach, where fish were plentiful on the point and the ocean was rich in seaweed. She played in the water for hours, going home totally “sun-kissed.” “An adorable time to grow up,” Lisa tells me.
Lisa enjoyed many sports; she was a keen tennis player and netballer, playing in the top teams for her age right up until the family moved to Wellington. Lisa was fifteen years old, which unfortunately marked the end of her sporting career. Local teams were well established in Wellington, and her attention was drawn elsewhere.