Kenneth Hayne's final report following the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry was made public early this year and its ramifications are being felt keenly in the industry. Although none of the recommendations explicitly mandate increased usage of or investment in technology, it is clear that such change is necessary. The strategic use of systems and technology will enable organisations to implement many of the report's recommendations. Further, it will improve compliance, strengthen accountability and governance, and begin to reinstate an appropriate culture within these businesses – thereby addressing key topics of the report.

Although the report concerned businesses within the financial services sector, the lessons learned are applicable all organisations. Consistent with the final report, there are a number of ways in which businesses in all industries can benefit from harnessing technology and data management systems, including:

Using technology to prioritise customers

By adopting a customer-focused approach, businesses clearly demonstrate that they value their customers. Technology can be utilised to promote customer education, encourage consumers to make informed choices and notify customers of their rights to redress – steps which go a long way towards regaining and maintaining consumer confidence. Technology can also be used by businesses to demonstrate that they value their customers' data, by implementing systems that increase consumer confidence that information collected is accurate, and that it is collected, stored and used only in accordance with the customer's expectations.

Using technology to ensure compliance

Following the Royal Commission's final report, financial services regulators are expected to operate in a more active, supervisory manner. As such, it is prudent for all organisations to ensure that their systems and processes allow them to engage with regulators or relevant third parties. Businesses should ensure that they are keeping up-to-date, accurate and consolidated records. Further, organisations may also benefit from artificial intelligence and data analytics in an effort to proactively monitor and manage risks. The use of simple and transparent processes will also reduce the potential for errors. Boards could then draw upon these data sets to challenge management where necessary.

Using technology to build trust

The evidence heard during the Royal Commission's public hearings, in conjunction with the more than 10,000 complaints submitted to the Commission, has caused an erosion in public trust. There is an opportunity for both start-up (such as fintech) organisations, and existing financial institutions, to adopt new technologies to improve the customer experience and rebuild trust.

In response to the Royal Commission's Final Report, we have prepared a report which contains our perspectives on the Royal Commission's findings, and outlines strategies to help financial services institutions respond to the recommendations.