FEAR & GREED | Business News Q+A: Three key takeaways from the big bank results
Aug 25, 2025
In this discussion, Noel Williams, PwC Australia’s Banking and Capital Markets Leader, delves into the evolving landscape of the banking sector. He highlights how private credit lenders are disrupting traditional banks, pushing them to innovate. Williams emphasizes AI's pivotal role in enhancing productivity while also posing integration challenges. The conversation underlines the stark competition banks face, particularly in productivity, as they strive to adapt to new market dynamics.
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Episode notes
Private Credit Eroding Bank Market Share
- Major banks are losing market share to non-bank financial institutions, notably private credit lenders.
- These NBFIs are nimble and specialised, taking slices of business lending that banks cannot address.
Regulatory Edge Helps Non‑Banks Win Deals
- Private lenders benefit from regulatory arbitrage and broader lending flexibility compared with banks.
- That advantage is especially pronounced in segments of business banking where banks face prudential and risk-appetite limits.
Productivity Has Stalled Despite Cost Moves
- Banks face persistent productivity stagnation with operating costs at decade highs.
- Labour and legacy-tech costs limit efficiency gains despite years of outsourcing and cloud moves.