Embracing digital – what lies ahead for Australian banks

The hope of digital adoption is that Australian banks will be able to monitor compliance and boost efficiency in the larger economy by incorporating technologies like cashless payments, open data, digital identification, digital signatures, and AI. For instance, open data will help smooth transaction and decision-making for individuals, businesses, and governments. By implementing such innovations, the financial sector will be able to spur growth and aid in the creation of a more productive economy.

Australia to progress research in CBDC

There is no doubt that Australian banks are looking to embrace digital in banking and we can see this with the exploration of The Reserve Bank of Australia explain its approach to the pilot into central bank digital currencies (CBDC) it aims to develop.

Australia’s central bank stated in a whitepaper on Monday (can we replace Monday with a date)that the CBDC pilot programme is progressing in Australia. [1].and should be finished by the middle of 2023

According to the Reserve Bank of Australia (RBA), the strategy is to investigate the potential applications for a CBDC in Australia before testing it out using Quorum, an enterprise-grade, private version of Ethereum.

The Reserve Bank is collaborating with the DFCRC to shift its attention to innovative use cases and business models that might be supported by the distribution of a CBDC, as well as to take the chance to better comprehend some of the technological, legal, and regulatory aspects involved[2].

However, digital implementation adoption for building more resilient compliance systems and processes cannot be solely achieved by technology platforms and solutions alone.

The right talent drives the required digital change

If the pandemic has taught financial services businesses anything, it is undoubtedly that hiring the proper staff is just as important as embracing digital processes and journeys. You can automate systems and processes, but you still need people. Technology automation can of course help with repetitive and relatively mundane tasks, but people can and must oversee automation, as well as ensuring that informed and accurate decisions are being made. What is needed, now more than ever, is a combination of a people plus technology solution. Automation of your current AML processes and systems can only take you so far – they need to be purposeful, and the right people will very much be needed to achieve this.

Having the proper organisational culture for administration, maintenance, and monitoring of these systems and processes is just as important as having the required systems and procedures in place and running well for digital governance. There is no denying the inherent connections between the two.

Getting governance right means that interdepartmental cooperation will also be important because governance will affect risk and operations teams in addition to compliance duties. Interdepartmental communication is essential to creating a culture that is aligned with the government, but it can be difficult in bigger heritage organisations.

Cohesion between teams must be ensured, but automation and digitised platforms or systems can only go so far in making this happen.

The right human eye and governance behind it are even more crucial than the right technology. Only physical human resources can give the necessary employees, who not only understand the significance of governance and data protection but who can also obtain buy-in and cohesive working strategies with numerous other departments.

The automation of enterprise security across all processes and systems has been one of the most noticeable changes during and in the early post-pandemic period.

Regulations are always changing, and many of these changes are industry- or region-specific.

To remain on top of these and future changes, governance leaders within businesses need to work with stakeholders from across their respective companies to ensure that nothing is overlooked, whilst also ensuring they are up-to-speed with upcoming additions or alterations to the regulatory landscape.

Governance executives inside organisations must collaborate with stakeholders from across their particular enterprises to ensure that nothing is missed and that they are knowledgeable about potential additions or changes to the regulatory landscape in order to stay on top of these and future changes.

Momenta are compliance resource specialists

Despite being highly regulated, the Financial Services industry can be unpredictable, with organisations often meeting unforeseen disruption whilst having to adhere to strict legislative demands and deadlines.

To remain compliant, it is increasingly important for financial institutions to undertake detailed assessments, putting measures in place to ensure potential risk is minimised. In such a rapidly evolving industry, there is a consistent and indeed rising demand for specialist knowledge and skill sets.

In parallel, many financial service institutions have of late opted to reduce headcount adopting a leaner, more cost-effective workforce model. However, addressing certain projects with this reduced internal resource and existing skill sets can present significant challenges.

Regardless of how far you are progressed with your digital journey and the processes that are involved, we can supply the right people at the appropriate time as you adapt to and address the challenges that this process can present.

At Momenta, we are continually building our ecosystem of validated, contingent financial services associates with the best industry skill sets, readily available when additional specialist support is needed.

Whether you require resources to aid with large scale remediation or front facing customer service roles, our associates’ extensive experience delivers results, on time and cost effectively.

Get in touch with our expert team of consultants to discuss your contingent workforce requirements.

Works cited:
[1] Salvo, D. / M.D. (2022). Australia Pushes Ahead With Central Bank Digital Currency, Announces Pilot Timeline. [online] Decrypt. Available at: https://decrypt.co/110533/australia-central-bank-digital-currency-pilot [Accessed 30 Sep. 2022].
[2] Smith, T. (2022). Reserve Bank of Australia Outlines Its CBDC Development in Latest Whitepaper. [online] The Fintech Times. Available at: https://thefintechtimes.com/reserve-bank-of-australia-outlines-its-cbdc-development-in-latest-whitepaper/ [Accessed 3 Oct. 2022].