David Moloney, the founder of Internal Consulting Group and the head of its global financial services practice, says the changes being implemented fit with his analysis of the evolution of the financial system.
He says the financial system is going through three eras: detriment reduction, competition and the betterment of society.
He says the Hayne royal commission exposed the era when financial institutions sold products that were to the detriment of customers. Hayne will encourage, or possibly force, the financial sector to remove products that cause detriment to customers.
The competition era, according to Moloney, involves greater transparency about product pricing and more choices for consumers. It should involve lots more switching of…