The second policy area I want to talk about is the Reserve Bank’s strategic review of payments innovation. This was the subject of my talk here a year ago and so I can be much briefer in my remarks today. When we talk about innovation, we need always to keep in mind the distinction between what is proprietary and what is systemic.
The proprietary sphere covers any area where a service provider can act independently and use an innovation to gain a competitive edge. The payments industry is very good at innovating in that way, and we see the evidence of it in many of the things that are being talked about in today’s conference.