Banking boldly to secure Australia’s future

We meet at a critical time for Australia and the world.

It is a moment that demands leadership, and a contribution from the banks that is practical and grounded in the national interest.

Allow me to make three observations on the broader environment in which Australia sits today.

My first observation is that the global order which many of us grew up with is being rewritten. 

Throughout the western world, domestic priorities and narratives are changing.  

Concern over living standards, the distribution of wealth and social cohesion are profoundly reshaping global and national debates. 

At the geopolitical level, power politics, instead of values, is resurgent.   

Both warfare and economic nationalism are challenging the rules-based order which defined much of the post-World War era.  

Second, the technological and security landscape is evolving at an exponential rate. 

Artificial intelligence, the energy transition, digital infrastructure and defence capabilities are all changing the world we live in, at pace, and posing fundamental questions for our societies.  

The scale of these dynamics is immense. Spending on AI, defence and energy transition could exceed USD10 trillion globally next year. 

My third observation is perhaps more surprising. 

In the middle of this turbulence the world remains economically resilient and, indeed, dynamic. 

The global economy has continued to grow, with another 3%-plus year likely in 2026.  

If the significant investment in AI and related industries pays off, this number could be much higher.  

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Unlocking Australia’s economic potential

So, what does this mean for Australia?  

 Australia has many advantages.  

This includes strong rule of law and institutional stability… high levels of education… vast resources and energy reserves… positive demographics… and proximity to Asia - the fastest growing region in the world. 

Even so, since the GFC Australia’s GDP per capita has grown at less than 1% per year, compared with 2.5% a year in the decade before that. 

I believe we need to collectively reflect on this and reset our levels of ambition and pragmatism to harness our opportunities. 

We are at a pivotal moment and have a choice to make. We can either harden our defences and try to weather the storm or – as the Socceroos showed us – balance this with an effective and targeted counter-attacking game that allows us to compete with confidence to win. 

Australia needs to take a more entrepreneurial approach - to be less risk averse – if we want to succeed in this new world order. 

Supporting customers and the economy

Amongst many things, this requires a banking system that is strong and responds to our customers’ needs. 

Our banks play two key roles: firstly, to be a driver of this bold ambition, supporting entrepreneurship and economic growth, and secondly it is to help those in need. This second role is particularly important at a time when many Australians face cost of living pressures, as inflation persists.

This is underpinned by the work of the ABA, whose mission is to deliver a strong, stable and trusted banking system that helps grow the Australian economy and builds the financial wellbeing of Australians. 

Priorities to secure the future

In this context, the ABA Council has set out four clear priorities for the industry. 

To support economic growth and agility, we are focused on improving regulatory efficiency to deliver more capital to the economy and enhance our sovereign payments capabilities. 

To protect and support our customers, we are building an ecosystem response to combat scams and fraud and strengthening regional banking and cash access. 

First - on improving regulatory efficiency to deliver more capital to the economy. 

As we look ahead, it is important to be clear about the strength of the banking system. 

Australia’s banks are unquestionably strong, as measured against global standards and delivered through regulatory design. 

That strength matters, as it allows banks to absorb shocks. However, it must be balanced with capital productivity - ensuring capital actively supports lending, investment and economic growth. 

There is more that can be done, and this starts with ensuring capital settings remain fit for purpose and support lending into the economy.  

We want to continue to be unquestionably strong. At the same time, peers such as the US and the UK, are reassessing elements of their capital frameworks with lending and growth in mind.  

This global context raises a clear question for Australia – whether current settings are doing enough to support efficiency and growth, while preserving the resilience and confidence in our banking system. 

In that context, we welcome APRA’s upcoming consultation on recalibrating capital risk weights to better align requirements with risk, while supporting lending and investment.  

This is an important step in a continuous dialogue with APRA on this issue, and we look forward to participating constructively to find that balance. 

A similar balanced approach should extend to the broader regulatory framework.  

It means improving the efficiency of the regulatory environment by reducing duplication and unnecessary burden, while backing initiatives that lift productivity.  

Consistent with this, we support the Government’s budget measures to modernise, simplify and improve regulation across the financial sector. 

Delivering sustained productivity gains will require continued reform. This is why the industry supports the call for all levels of government to cut regulatory costs by 25 per cent by 2030. 

A strong banking system and a strong economy are not separate objectives, they are fundamentally connected and equally important. 

Our second priority is enhancing our sovereign payments capabilities. 

Australia’s payments system is a critical national capability.  

It operates much like other essential systems we rely on every day, which are often unseen but fundamental to living our lives. 

It keeps money moving securely and efficiently through the economy. 

Banks have invested heavily to build and maintain that system, including more than $2 billion in the New Payments Platform, which enables near real-time payments for Australians every day. 

Maintaining that capability requires ongoing investment.  

Recent regulatory decisions affecting funding within the payments system risks shifting value away from the local institutions that build and sustain this infrastructure, towards global providers. 

That is why it is essential that policy settings take a holistic view, one that places the sovereign capability and resilience of Australia’s payments system at the centre of decision‑making. 

As the payments system evolves, all participants, domestic and international, should operate under equivalent obligations, contributing fairly to costs and supporting the integrity of the system. 

Against this backdrop, we look forward to the RBA’s upcoming review of the retail payments system, as well as the Government’s new strategic plan.  

Both of these will be important in shaping a framework that supports long‑term investment, capability and resilience in sovereign infrastructure. 

Our third priority is supporting an ecosystem response to combat scams and fraud. 

Australians need to trust that the banking system is safe, and that safety is built on security.  

But advances in technology are increasing both the scale and sophistication of scams and fraud, placing pressure on that trust. 

The industry has taken decisive action. 

In 2025 alone, Australian banks invested $2.5 billion in protecting the banking system and customers from all types of financial and cyber-crime. 

Through the voluntary and industry-led Scam-Safe Accord and initiatives like confirmation of payee – already used more than 100 million times - banks are strengthening safeguards, improving detection and sharing intelligence more effectively.   

Policy settings are also evolving, and we welcome the Government’s work on the Scams Prevention Framework.  

The framework’s success will require a clear focus on prevention, making Australia less attractive to scammers, and ensuring consistent obligations are shared across the ecosystem. 

A well-calibrated framework should close gaps and reinforce shared accountability, with a strong focus on preventing harm at its source.  

Banks stand ready to meet these and other clearly defined obligations that help protect our customers.  

We are confident that the biggest gains in scam prevention can be had by stopping scams at the source, which is why the ecosystem approach is so critical. 

Digital platforms should be accountable for blocking the advertising of known investment or romance scams, just as banks should be accountable for stopping payments to known scam accounts. 

The framework should avoid the mistakes of some markets overseas that focus on redistributing losses or, worse, creating incentives that encourage scammers to target Australians. 

Education is also critical, so customers are equipped to protect themselves.  

We need a societal firewall where customers, banks, telecommunications providers, digital platforms, and other sectors each play a role in defending against scams, without creating moral hazard. 

While the banks have acted quickly, we must be agile to stay ahead of new threats beyond scams, which are becoming more complex. 

Cyber-attacks are becoming more frequent, faster, and harder to detect, and are increasingly enabled by artificial intelligence.  

In turn, the industry is strengthening its defences and working collaboratively to keep the banking system safe.  

This includes building a shared understanding of threats to the system, reinforcing core cybersecurity fundamentals and developing best practice defences.  

This work will be supported by the ABA’s newly established forum to support the industry’s response to cyber threats. 

Our fourth and final priority is strengthening regional banking and cash access. 

Banks are responsible for ensuring Australians have access to the banking and cash services they need. 

The major banks have committed to moratoriums on regional branch closures, alongside strengthened Bank@Post arrangements.  

These are important developments - but they are not, on their own, a long-term solution. 

The focus now must shift to more durable settings. 

Even with continued changes in the way people bank, our industry knows that we have an obligation to provide Australians in rural communities with access, choice and competition in banking services. 

We are actively progressing practical, industry-led solutions to secure access to both in-person banking services and access to cash. 

The ABA has welcomed the Government’s proposed regulatory framework for the cash-in-transit sector, which will provide an important safeguard to ensure the ongoing distribution and availability of cash across the economy. 

Banks and retailers have already played a critical role providing more than $100 million in additional funding to stabilise cash-in-transit services and keep cash moving across the country. 

The priority now is to build on that immediate support with a durable, long-term framework, supported by appropriate transitional arrangements, to ensure the system remains resilient and reliable into the future. 

Let me leave you with this final comment: Australia’s banks are backing Australia. 

We know that at times of uncertainty and fast-moving change, Australians turn to national institutions - including banks - for strength, stability and support.  

Now is that time.  

There is a clear thread running through our ABA priorities: protecting the national interest.  

Our role is to ensure Australia meets that future with a banking system that is trusted, capable and secure, one that serves households, businesses and communities with reliability and integrity.  

One that gets the balance right between supporting growth and protecting Australians. 

My commitment on behalf of the ABA is that as an industry, this is where we will focus. 

That is what it means to bank boldly. And that is how we help secure Australia’s future. 

Nuno Matos is CEO at ANZ