Australian banks continue efforts to counter financial abuse

The ABA welcomes the release of the Federal Government’s response to the Parliamentary Joint Committee on Corporations and Financial Services’ inquiry into financial abuse, released today.

ABA CEO Simon Birmingham acknowledged the important work of the committee as well as the Government’s response and said banks were committed to protecting customers from the scourge of financial abuse.

“Banks and their staff see the impact of financial abuse all too often, and every day they’re helping people escape from this abuse and take back control of their money,” Mr Birmingham said.

“They also have specialist teams who can help victim-survivors open new accounts, deal with joint accounts, get support with financial hardship or connect with specialist services.

“There has also been a major focus across the industry on safer product design, as well as new safeguards for small business lending and more ways for customers to alert their bank to financial abuse.

“Banks will never accept their products being misused in ways to control or coerce another person with many now making it clear in their terms and conditions that abuse won’t be tolerated.

“We also welcome the Government’s recognition of the work already being undertaken by banks and industry bodies to combat financial abuse including efforts to identify harmful transaction activity and improve support for affected customers.

“The ABA looks forward to continuing to work with Government, law enforcement and victim-survivor advocates on referral pathways and other measures to keep customers safe, while ensuring these measures cannot be weaponised by perpetrators.”

The ABA is a member of the Financial Safety Alliance, a partnership with Flequity and three other finance sector industry associations to align approaches and strengthen safer design practices across the sector.

Last month, the ABA also released an updated industry guideline on financial abuse, bringing together separate resources on elder abuse and family and domestic violence into a single framework.

Inclusion