Organisation also unveils new financial assistance hub
The Australian Banking Association has rolled out a campaign which encourages Australians who are facing difficulties with loan repayments to get in touch with their banks for assistance as well as a new financial assistance hub.
“Banks know many of their customers are making difficult financial decisions right now as the country navigates challenging economic conditions,” ABA CEO Anna Bligh (pictured above) said in a media release.
“Banks stood by their customers during the COVID-19 pandemic, deferring payments for people who for the first time in their lives found themselves unable to pay. Banks stand ready to help people again now.
“The earlier people reach out; the faster banks can help. Don’t tough it out on your own.”
The ABA campaign, called “Don’t tough it out on your own,” will see its ads broadcast on radio, featured in digital news, and displayed on social media platforms for four weeks.
Bligh said banks could provide assistance by reducing home loan or credit card payments, modifying the loan duration, transitioning a customer to interest-only payments temporarily, or allowing deferred payments for a specific period.
“People who are finding their finances are stretched should not feel they have no options, and they have to do it on their own,” Bligh said. “Banks have dedicated, highly experienced teams ready to help. Please get in touch. Don’t delay.”
Bligh said there were encouraging signs that many customers were successfully navigating the uncertain economic environment and emphasised the importance of identifying warning signs of financial distress.
“Thankfully, recent data shows that most customers are keeping up with their repayments, and that arrears are well within historical ranges,” Bligh said.
“But for those worried about falling behind or finding it difficult to navigate the current conditions, banks have options to assist in the short or long term. The spiral into financial hardship can happen very quickly but early assistance can make a real difference. Please talk to your bank.”
ABA also recently introduced a new Financial Assistance Hub, intended as a “pathway out of financial difficulties.”
Initially introduced during the COVID-19 pandemic, the hub has been revamped and now includes information for customers transitioning from fixed-rate mortgages and struggling with buy now pay later loan repayments.
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