21 November 2023
Banks will contribute $19 million over three years to the Government’s voluntary financial counselling model announced today by Minister for Social Services, Amanda Rishworth.
“Banks large and small are proud to be funding the lions share of this initiative.” said ABA CEO Anna Bligh.
This funding will help increase the availability of free, independent counselling services for people experiencing financial difficulty who need advice.
“Banks have long supported financial counsellors and are very proud to be supporting this voluntary industry initiative,” said ABA CEO Anna Bligh.
“Financial counsellors provide a critical service to Australians when they are making some of the most difficult decisions in their lives. It is critical they have resources to do that important work,” Ms Bligh said.
“Financial counsellors are on the front-line helping people who are going through a tough time, when they’ve lost their job, their relationship has broken down, they have health problems, or have been impacted by a natural disaster.”
As well as reaching out to a financial counsellor, banks are urging people experiencing financial difficulty to talk to their bank.
The Australian Banking Association’s financial difficulty campaign has a clear message for people who are worried about being able to repay their loans, “Don’t tough it out on your own.” said ABA CEO Anna Bligh.
Ms Bligh said the spiral into financial difficulty can happen very quickly, and it is important that people reach out for support as early as possible.
“Banks have dedicated, highly experienced teams ready to help. Please get in touch with your bank or a financial counsellor. Don’t delay.”
Banks may be able to help by:
- lowering home loan or credit card loan payments
- restructuring the length of a loan
- moving a customer to interest-only payments for a while
- deferring payments for a period.
Read more about the financial hardship campaign here.
Also designed to assist as a ‘pathway out of financial hardship’, the ABA recently launched a new Financial Assistance Hub that has been completely updated with information for customers who are moving off fixed rate mortgages or struggling to repay buy now pay later loans.
Visit the Financial Assistance Hub here.
Latest news
The ABA welcomes APRA’s proposals to make the internal ratings-based (IRB) accreditation process simpler and more transparent, giving mid-sized banks a competitive boost. ABA CEO Simon Birmingham said the changes would support competition and deliver better outcomes for customers. “This is a practical and sensible pro‑competition step from APRA,” Mr Birmingham said. “When fully implemented,… Read more »
E&OEInterview on Sky News with Cheng Lei Cheng Lei: Australian banks closed 155 branches over the last year, but the rate of closures has slowed. For the implications, let’s bring in Australian Banking Association Chief Executive and former Liberal Minister Simon Birmingham. Mr Birmingham, welcome to the show – great to talk to you in… Read more »
Australian banks welcome the Federal Government’s release of an updated Regulatory Initiatives Grid, helping to ensure there is more transparency and coordination when new financial rules are introduced. The ABA particularly welcomes new principles that streamline coordination between regulators, reducing duplication and regulatory burden across the industry. ABA CEO Simon Birmingham said the Grid was… Read more »