2020 CEO Survey: Marc Luet, Citi Australia

ESG was moving up the agenda anyway, but the pandemic has accelerated this, says Citi Australia’s Marc Luet.

How would you rate the shape of the Australian economy as we head into the new year?

Strong. The Australian economy is recovering well from earlier pandemic induced weakness. The key has been the early and active management of the health implications, followed by aggressive fiscal and monetary policies to ensure the health crisis didn’t become a liquidity crisis. To maintain the recovery, it will be important that the stimulus is not withdrawn too quickly and that governments continue to remove restrictions, in line with health advice.

What three reforms are needed to sustainably grow the economy?

In my view, there needs to be an increase in the GST. We need to widen the base and reform personal income tax. Australia would also benefit from a consistent and coherent energy policy nationally, more incentives to help increase labour force participation and a review of the regulation that prevents some banking processes from becoming fully digital.

What are the best growth opportunities for your company in 2021?

We are focused on a number of areas where we have built a leadership position including sustainability. ESG was moving up the agenda anyway, but the pandemic has accelerated this and drastically increased the pressure on companies to address sustainability. Clients are asking us for help to develop their ESG strategies, change their financing profile, and sell or demerge parts of their business. As a global bank, Citi has the expertise to support clients across all sectors by meeting them where they are, and working with them through the low-carbon transition.

What impact will digital transformation have on your company?

Digital transformation allowed us to close our last bank branch in Australia this year. Today, the majority of our consumer customers bank via Citi’s online platforms. Digital has enabled us to simplify and personalise our retail products, while digital services offered by Citi’s Trade and Treasury team are enabling our corporate clients to be on-boarded without paper or physical signatures, execute global payments and receipts seamlessly and manage risk more effectively than ever before.

How would you rate business, state and federal government performance this year?

The economic and health response from Australia’s federal and state governments has been world leading. While there have been some missteps along the way, these have been minor by international standards, and the overall outcome speaks for itself. When I compare what has happened in Australia to other countries in which I have worked in Europe, Australia can be proud of what has been achieved. This is recognised in international investment markets and Citi has experienced strong demand for Australian government debt as a result.