With housing affordability, AI, and climate change in focus
As the new year unfolds, NAB CEO Ross McEwan (pictured above) has shed light on critical issues facing Australia in 2024, emphasizing housing affordability, artificial intelligence (AI), and climate change.
McEwan underscored the collaborative responsibility of big businesses to partner with the government and community in addressing these challenges.
Addressing the housing crisis
“Housing is Australia’s biggest issue – it will continue to have a disproportionate impact on young and vulnerable Australians if we don’t get the settings right now,” McEwan said. “I worry that the great Australian dream of owning your own home is at risk.
Housing affordability is at a 30-year low, and rental prices are escalating due to insufficient housing for the growing population.
“The gap between supply and demand has increased significantly,” McEwan said. “We’re building around 50,000 homes less than we need each year.”
The NAB CEO urged collaborative efforts among all levels of government to simplify regulations, free up land, and provide targeted support for social and affordable housing.
NAB commits to contributing by lending an additional $6 billion for affordable and specialist housing by 2029. The bank has already invested $67.5 million in a specialist disability accommodation portfolio and supports social and affordable accommodation projects through Nightingale and Good Shepherd.
“This issue is not just for governments to solve. Banks, developers, builders, and community partners can all move faster,” McEwan said.
AI implementation for customer protection
McEwan highlighted NAB’s extensive use of AI, especially in cybersecurity, fraud prevention, and financial crime detection.
The bank’s Customer Brain initiative aims to enhance customer engagement and efficiency. McEwan emphasised the need for responsible AI implementation, combining machine intelligence with human oversight to ensure customer protection from the threat of cyber attacks.
“Our job is to help protect customers and educate them about the red flags and how to stay safe,” he said. “AI has a role to play in this too, we’re already using it to identify unusual behaviour and stop scams from happening.”
Climate change action
NAB’s research with Deloitte Economics indicated that Australia could add $435bn to its economy by 2050 through capitalising on natural advantages in solar, wind, and critical minerals.
“NAB is Australia’s leading bank for global renewables transactions – and has been for some time,” McEwan said. “Almost three-quarters of our power generation financing is already directed towards renewables.”
As a major player in renewable financing, NAB commits to playing a significant role in addressing climate change challenges, acknowledging the need for ongoing action and collaboration.
“We recognise the urgent action required to get on track to meet national targets and will continue to consider the implications for our business,” McEwan said.
“To take advantage of this opportunity, public and private planning and investment needs to be coordinated. Investment and labour is also needed to drive renewable projects, with shorter lead-times and a consistent national framework for green projects.”
To read the NAB media release, click here.
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