The Economy, Stupid Can We Really Trust the Banks Again?
Aug 28, 2025
James Ayres, a banking specialist, and Megan Flamer, a tech entrepreneur, delve into the tumultuous journey of Australia's banks after the Royal Commission scandal. They discuss how the Commonwealth Bank maintains its dominance and consumer loyalty amidst public skepticism. The conversation covers the complexities of banking fees that impact consumer trust, ethical dilemmas in workplace monitoring, and the humorous struggles of compliance in a return-to-office culture. Can the banking sector truly regain trust in a time of innovation and scrutiny?
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Royal Commission Shifted Culture But Not Fixed All
- The Royal Commission exposed systematic misconduct but only some problems were fixed afterwards.
- Cultural and structural issues persist, so trust recovery is incomplete.
Structural Forces Drove CBA's Rise
- Commonwealth Bank's market dominance stems from structural tailwinds and index flows as much as managerial skill.
- Passive funds, foreign buying, deposit guarantees and housing exposure amplified its valuation.
Customer Loyalty Fuels Bank Complacency
- Big banks leverage incumbency and customer loyalty to retain market share despite misconduct.
- Australians stick with familiar banks, reinforcing oligopoly power and weak competitive pressure.