In this blueprint of the payments systems, Adams explains the different roles banks play in the payments space:
- They cooperate with each other to ensure transactions flow seamlessly around the network;
- they compete with each other by creating value added products and services for their customers that use the various payments platforms; and
- they provide the liquidity to keep the economy moving.
“[ANZ has] a role in society to keep the Australian, New Zealand and the other economies in which we transact moving and we've got to move that money around.”
“[Cheques are] almost certainly [doomed],” he tells bluenotes on podcast. “But it’s a question of how long.”
“There are a couple of countries… which are well progressed down the path [to electronic payments only]. It’s quite tricky though as there are certain customer groups which don’t have access to [the internet or] smartphones. They do still rely on physical cash or paper to write a cheque.”
“Progressively it will just become so uneconomic to transact with cheques that I think there'll be a time they will disappear.”
Adams also talked in depth about how the payments operations plays into the institutional environment which you can read about in a future edition of our Further Reading series.
Jemma Wight is production editor at bluenotes