2019 CEO Survey: Ahmed Fahour, Latitude Financial

Latitude Financial CEO Ahmed Fahour. Picture: Aaron Francis

Every year The Australian’s John Durie asks some of the biggest names in Australian business five key questions about what’s coming in the year ahead.

Here, in his own words, is what Latitude Financial CEO Ahmed Fahour sees ahead in 2020.

You can read more from the CEO Survey here.

How is your company affected by low-interest rates and what is needed to boost the economy?

The lower interest rate environment will help to lift confidence and support discretionary spending. It’s also a positive for Latitude. Because we fund from capital markets, the lower cost environment has enabled us to improve our funding position, helping to support investment in our business and ultimately benefiting Latitude customers.

What is the impact of government regulations on your company, including those applying to the financial sector?

The impact on the overall market has been felt with a reduction in the total volume of personal loans, which is down on last year. Despite this, Latitude continues to perform strongly and has grown market share as consumers look for alternatives to the major banks.

Ultimately, policymakers need to strike the right balance between protecting consumers and enabling lenders to do their job responsibly.

What percentage of company revenues are spent on research and development, and how is your company using technology to improve performance?

Investment in digital and technology remains a priority for Latitude as we continue to innovate our products. We saw the benefits of this in 2019 with the launch of LatitudePay and new credit card features like instant provisioning. This means that Latitude customers can, within minutes of being approved online, use their new digital card on their mobile phone – they don’t have to wait for their physical card to arrive in the mail.

What are the three major policy issues facing the country and what should be done about them?

For my own industry, the royal commission shone an important spotlight on examples of wrongdoing in financial services. Now we need to get the balance right so that consumers and households can access the credit they need responsibly, benefiting the economy.

What are the major impediments to long-term growth facing your company and what can or is being done about them?

Like other industries, financial services are being disrupted by changing technology, competition and consumer behaviour. But we’re not waiting for this change to pass us by, we’ve embraced it. We’re investing in product innovation to meet the changing needs of our customers and remain at the forefront of our industry.