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Mr Sibley focuses his remarks on:
Retail banking faces a challenging and unpredictable future. The winds of change are strong, but the fundamental requirements of modern economies and societies would suggest that there will continue to be a need for retail banking services to be delivered long into the future.
So, while there are risks and uncertainties there must also be opportunities. Taking advantage of these opportunities requires longer-term thinking and investment, by both incumbents and new entrants. This includes investing in infrastructure, technology, people and culture that will enable delivery into the future.
It also requires change to demonstrate trustworthiness and that you are committed to delivery for your customers beyond shortterm acquisition. The Central Bank’s expectation is that banks’ operating models are more than technology and innovation driven. As outlined by Grainne McEvoy, the greatest risk to consumers comes not from technological developments, but from the culture of the firms in charge of the technology. If you put new technology in the hands of people and firms who are committed to protecting and delivering value for their customers, it is far more likely to result in positive consumer outcomes.
Moreover, delivery for your customers requires that retail banks are financially and operationally resilient, well-governed, understand and manage their risks and have sustainable business models. Whatever changes come to products, services, delivery channels and customer expectations, these fundamentals will remain of crucial importance and will continue to form the basis of the Central Bank’s approach to the prudential supervision of the retail banking sector.