Simon Birmingham speaks to 2SM’s Tim Webster on banks’ hardship support for customers

E&OE
Radio Interview
2SM Sydney
7 May 2026.

Topics: Banking hardship support for customers; competition within the banking sector.

Tim Webster (Host): So, we’ve done a story ourselves, and it’s a troubling time for people who have a mortgage. They just copped an interest rate rise, and the suggestion is there’ll be even more of them throughout the year. So, the word is to seek a bit of advice and a bit of help, rather than sit on your hands. But former finance minister, but now as the CEO of the Australian Banking Association is Simon Birmingham, is on the line with us. Good morning.

Simon Birmingham: Good morning, Tim. Good to be with you.

Tim Webster: Yeah, lovely to talk to you. I mean, an interest rate rise is not easy for people to manage at times, and it comes as a surprise, and sometimes it doesn’t. I suppose this year there’s a bit of worry of how many there’s going to be.

Simon Birmingham: Absolutely the concerns that are felt by many and the pain that is felt by some are very real. And if there’s a first and primary message that I’d leave listeners with, it’s if you or people you know are in circumstances where they’re really feeling the stress and they might be about to fall behind or don’t think they can keep up in their payments then don’t tough it out on your own. Get in touch with your bank ASAP. There are specialist teams in all the banks who can look at different types of hardship support measures, everything from moving people onto interest only loans to restructuring arrangements.

There are ways to try to work through this, and banks are much more agile and responsive nowadays, and some of the previous reputation about trying to make sure that they can get people through tough times and they work with customers if need be.

Tim Webster: Yeah, and we’re not here to give financial advice, obviously, but people are going to take out a fixed mortgage or a variable one, depending on what they think the circumstances are going to be. And as you say, I did the numbers early in the week for the listeners. And quite a few do take an interest only loan, because it’s a way to maybe get through for, I don’t know, Simon, 12 months or so until things settle down. And you hope eventually they will.

Simon Birmingham: Well, that’s right. Again, banking products have many different attributes built into them nowadays that didn’t used to be the case. Many households will have offset accounts or other facilities that have enabled them to get ahead. In fact, the statistics are really quite striking that there’s a fair bit of resilience out there in the community too. Still, around 80% of households with a mortgage are ahead in their repayments, around 30% of those households are, in fact, around two years ahead of their loans in terms of their repayments.

So, people have and do use those sorts of facilities to build up a bit of a safety buffer for themselves and to get ahead, and that can become really important at times like this.

Tim Webster: Yeah, I wonder what it is, you know, people being reticent to make that call because they’re fearful of maybe what the response will be. But you’re saying, and I have to say, you know, the bank that I’m with, and I’ve been with them since, goodness me, you probably don’t remember them, the little metal money boxes we used to have as kids in with the Commonwealth Bank, which is in the shape of the bank in Martin Place.

So I’ve been there with him a long time, and I find them these days to be a lot more active and proactive than they used to be. So, you’re saying there’s specialist teams there that can answer your calls and your concerns.

Simon Birmingham: Look, that’s right. I mean, obviously many people are going to work their way through as Australians stoically. Do they feel the pressure, but they manage their finances, and they take pride in their ability to do so themselves. If you’re really facing a tough time, then those teams are there. The Australian Banking Association, shortly after the Iran war commenced, we began a nationwide campaign with that message, don’t tough it out on your own.

Our website, ausbanking.org.au, has information around hardship contact points for all of the major banks and many of the regional and other banks who are our members. That provides the contact details for you to get in touch with those teams and just talk about your circumstances if you need to, and make sure that you’ve done so before it reaches a point where we’re coming back from that might be harder, or decisions might have to be much tougher than they would otherwise they…

Tim Webster: Yeah, I’m wondering if it’s a better idea, and not that there’s anything wrong with online, rather than online, make a call or maybe even go into a branch and have a chat. I know a lot of branches are closing for a variety of reasons, but I mean, online, yes, you could do it that way, but a chat on the phone would be better. I’m thinking.

Simon Birmingham: Yeah, indeed. And that website link I gave listeners has the different contact points for banks that includes contact points that people can use on the phone. Often now yes, while branch networks have changed, many of the banks are opening bigger service centres that are less about tellers standing there behind the counter handing cash over, because people don’t do that as often nowadays, but more about having staff that you can actually sit down with to talk about a circumstance or a situation.

And so again, those bigger bank service centres that provide brand support for all of your account services and otherwise, and some of them even have their own dedicated financial hardship or support people who are in those centres able to provide assistance.

Tim Webster: Yeah. So bottom line is, and we said it last week, and it’s great to have you on, don’t be worried about it, and don’t sit on your hands and do nothing, make the call and just see what can be done. And as you’ve described, there are, and I’m just seeing your release here. There are many things that can be done that you should try and do in that call or into the branch, or whatever it may be.

Simon Birmingham: That’s right, the length of your loan for those, the frequency of repayments, access in flexible terms, if you have term deposits or other facilities, range of different things that can be considered. So for many Australians, and we on the other side of this equation, household deposits are at record levels, $1.73 trillion of household deposits being held in banks, in different facilities, paying interest to people, and of course, paying increasing rates of interest to those households.

So, there are always two sides to the story as well, and we have to be cognisant of that. And people in more fortunate circumstances who are managing their money should, of course, also be looking for the best terms and the best rates to do so, and on all sides, it’s a highly competitive market. Last year, we saw around 640,000 mortgage holders change banks, and that shows just how competitive it is that people are willing to go through the process of changing their bank for their mortgage just to get a better deal.

Tim Webster: Yeah, everything you’ve just said just proves the point. Don’t sit on your hands and do nothing. Be proactive. Yeah,

Simon Birmingham: Absolutely.

Tim Webster: Thank you. Great to talk to you. Thanks very much.

Simon Birmingham: Thanks. Tim, my pleasure, any time.

Ends

Banking support