Banks step up protections for customers experiencing financial abuse

Banks will better detect, prevent and respond to financial abuse under an updated industry guideline released today by the Australian Banking Association.

The ABA has brought together separate resources on financial abuse, including elder abuse and family and domestic violence into a single framework, building on existing industry guidance and supporting the financial abuse provisions in the Banking Code of Practice.

Uplifts within the guidelines include:

• expanding support for customers experiencing vulnerability, including guidance on how financial abuse can present in First Nations communities.
• strengthening the focus on product and service design, including safety by design, staff training and safer ways for customers to disclose abuse.
• recognising small business lending as a channel for financial abuse, with safeguards to test genuine borrower benefit.
• updating expectations for managing third-party authorities, with stronger protections where there is a risk of abuse.

ABA CEO Simon Birmingham said this was about ensuring banks continued to have the strongest safeguards in place to protect customers from financial abuse.

“Banks have spent more than a decade working to prevent financial abuse, and everyday bank staff across the country help customers stay safe and get back control of their money,” Mr Birmingham said.

“Banks will never accept their products being used to control or coerce someone. It is despicable behaviour and the industry is working around the clock to stamp it out.

“For many people, their bank is the first place they turn when they are trying to regain control of their finances. The guideline is clear that banks should make sure a customer only has to explain their situation once and agree a safe way and time to stay in touch.

“Australian banks are taking world-leading steps to help embed financial safety by design principles in banking products, helping stop abuse before it occurs.

“If you think you may be experiencing financial abuse, reach out to your bank as soon as possible. Banks have specialist teams that can provide confidential support and help you understand your options.”

View the updated Industry Guideline: Financial Abuse here.