In a wide-ranging listening to, Elliott stated BNPL operators lengthen credit score to prospects with out the identical supervision as banks.
BNPL firms, which permit prospects to pay for purchases by way of interest-free charges, usually are not required to do credit score checks on their prospects as a result of they don’t pay curiosity. The sector is booming, with Afterpay’s market worth sitting at near $ 37 billion.
When requested if BNPL regulation was applicable, Mr. Elliott replied, “I did not know there was one.”
Whereas he admitted that BNPL firms have been modern of their strategy to the market, it was now that they have been regulated as credit score.
“I do not suppose due to which label I put something, we must be handled in another way by regulation. I take a look at it and I feel what they do does lengthen the credit score, and I feel they need to subsequently be topic to the identical guidelines as everybody else. ‘others,’ he stated.
“Excellent, you have come to the place you’re with some regulatory arbitrage and now it is time to play with the remainder of the market and do it in full regulation.”
Elliott additionally stated the proportion of consumers struggling to handle their repayments was greater than for BNPL than for financial institution bank cards, and urged it was as a result of ANZ did extra “due diligence” on prospects.
The ANZ chief was additionally questioned on financial institution boards about loans to carbon-emitting prospects, which have been attacked final 12 months by members of the federal government as “alerts of advantage”.
Elliott defended the financial institution’s strategy to local weather change threat as “banking 101,” saying it had an obligation to shareholders, depositors and different actors to think about all sorts of threat, together with the local weather change.