Consumers and small businesses struggling with debt will be helped by new initiatives, say ABA
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Consumers and small businesses struggling with debt will be helped by new initiatives, say ABA
Better support for customers in financial difficulty and more support for farmers and small businesses are among a range of new initiatives announced by the Australian Bankers Association. New best practice standards will be developed for valuation practices around farming and how banks appoint receivers. The initiatives are in response to research conducted in 2016, following extensive criticism of the banks' financial advice and insurance scandals involving several banks.
A further initiative aims to make it easier for consumers to switch banks, bringing together banks, consumer groups and government representatives in March to discuss the issue. Other initiatives, many of them already announced, include the appointment of customer advocates to deal with complaints, more checks on financial advisors and the Segdwick Review into remuneration. Last week an interim report of the Sedgwick Review questioned whether introducer fees and volume related bonuses for brokers could compromise consumer outcomes, whilst indicating it would look to ASIC's forthcoming Remuneration Review for guidance.
ABA Chief Executive Steven Münchenberg said that the banks are also looking to raise consumer awareness of policies banks already have in place: “for example, banks have a range of low cost and fee-free products and services to suit low income earners and retirees. Banks offer financial hardship support programs to help their customers through tough times. Banks also provide protection for customers who are the innocent victims of fraud. Many customers don’t know about these products and services, and we want to change that."
Better support for customers in financial difficulty and more support for farmers and small businesses are among a range of new initiatives announced by the Australian Bankers Association. New best practice standards will be developed for valuation practices around farming and how banks appoint receivers. The initiatives are in response to research conducted in 2016, following extensive criticism of the banks' financial advice and insurance scandals involving several banks.
A further initiative aims to make it easier for consumers to switch banks, bringing together banks, consumer groups and government representatives in March to discuss the issue. Other initiatives, many of them already announced, include the appointment of customer advocates to deal with complaints, more checks on financial advisors and the Segdwick Review into remuneration. Last week an interim report of the Sedgwick Review questioned whether introducer fees and volume related bonuses for brokers could compromise consumer outcomes, whilst indicating it would look to ASIC's forthcoming Remuneration Review for guidance.
ABA Chief Executive Steven Münchenberg said that the banks are also looking to raise consumer awareness of policies banks already have in place: “for example, banks have a range of low cost and fee-free products and services to suit low income earners and retirees. Banks offer financial hardship support programs to help their customers through tough times. Banks also provide protection for customers who are the innocent victims of fraud. Many customers don’t know about these products and services, and we want to change that."
