Morning Briefing: Leaked ABA documents reveal plans to rebuild trust in industry

"It's fair to say the industry has been conscious there has been some reputational challenges" ABA chief... Research, not technology still the key to finding the right investment property...

Leaked ABA documents reveal plans to rebuild trust in industry 
Banks are demanding a 'significant step up' from the Australian Bankers' Association, preparing to draw the attention of politicians and key financial regulators to rebuild the damaged reputation of the industry, the Australian Financial Review reports. 

The nation's bankers will target politicians and key financial regulators as part of a campaign to rebuild the industry's damaged reputation after a series of financial advice scandals and controversy over banks lifting interest rates independently of the Reserve Bank.

It will also involve "detailed work" to outline the rationale behind why the major banks all lifted their mortgage rates in October independently of the Reserve Bank, and will cease advocating for issues like climate change to focus on "repositioning the industry's image as an "essential and responsible contributor to Australia's current and future prosperity".

Australian Bankers' Association chief executive Steve Munchenberg has said more of the association's resources were being put into explaining to consumers why rates were hiked and rebuilding consumers' trust in banks' financial advice.

"It's fair to say the industry has been conscious there has been some reputational challenges," Mr Munchenberg told The Australian Financial Review.

"The ABA Council delivered an unequivocal message at its last meeting that it wants to see a significant step up from the ABA in repositioning the banking industry as an essential and responsible contributor to Australia's prosperity," the documents said.

"My view is people are entitled to an explanation why interest rates rise and they might not like it but it's incumbent on us to explain it," Mr Munchenberg told the Financial Review.

 
In depth: How to write $5.2m in one month in your first year
Aussie’s top WA writer explains how to save time and kick-start writing big numbers early on

Research, not technology still the key to finding the right investment property
Thanks to the powers of technology, prospective real estate buyers could soon easily carry out inspections from the comfort of their own home, no matter how far away the potential purchase maybe.

Developer Metricon last week launched their Virtual Display Experience, which through the use of a headset allows people to take a virtual tour of a property.

Metricon developed the system in conjunction with Melbourne-based Company Scann3D, who used 3D scanners to capture the interior of Metricon houses and then turn that information into a virtual reality walkthrough.

While Metricon is the first company to deploy the technology, managing developer Ross Palazzesi said he was more excited about the benefits the system would have for buyers, especially those in regional areas.

“The Virtual Display Experience is not only exciting, because it is a first in Australia, but it is extremely practical,” Palazzesi said

“It’s important that we offer our regional customers a valuable and completely unique experience, all while solving basic geographical challenges. We hope to offer this technology to other regional centres across the country in the future,” he said.

While Palazzesi is excited by the technology, Allister Lewison, director of property investment advisory firm OpenCorp, isn’t ready to crown virtual reality systems as the next big tool for investors.

“I’ve seen a little bit about this sort of thing recently and I think it’s something that will suit owner occupiers looking for a home because it will help them form an emotional connection with the house,” Lewison said.

 
In depth: Reckon you’re a young gun? Prove it
Five reasons why applying for MPA’s Young Guns list is easier than you think