Traditionally, payment services have been provided by regulated financial institutions through transaction accounts. These institutions are prudentially supervised to ensure that the public can have confidence that they will be able to meet their financial commitments under all reasonable circumstances. In addition, in most countries, including Australia, retail deposits would be protected if a bank were to fail.
The fact that our people have accumulated high credit appetite over the past decade or so, and that, when they borrow, they do not respond adequately to the level of interest rates, does not relieve banks from the responsibility to be real partners and financial advisors to their clients – from being responsible not only for what they do, but also for what they tell their clients.