Banks across Australia are stepping up their efforts to support customers facing financial hardship, following the release of an updated industry guideline by the Australian Banking Association (ABA).
The new guidance sets out best practice for banks in assisting customers during challenging times, reflecting the industry’s commitment to ensuring support is accessible when it is needed most.
The guideline builds on the existing Banking Code of Practice and existing obligations within the sector. It aims to simplify the process for customers in distress, reducing complexity and stress at a time when many are already under significant financial pressure.
Australian Banking Association CEO Anna Bligh said, “When people are doing it tough, the last thing they need is a complicated or stressful process to get help.”
“This guideline is about making it easier for customers to reach out and know they’ll be treated with care and compassion,” Bligh said.
Banks are being encouraged to identify the warning signs of financial difficulty at the earliest stage possible and to engage with customers proactively. This includes having better conversations with customers and offering practical, tailored support that reflects each person’s unique circumstances.
Bligh emphasised the commitment of banks to be a lifeline for customers, adding, “We want every customer to know, if you’re struggling, your bank is ready to help, you don’t have to tough it out on your own.”
The updated guideline underlines the critical role banks play in helping customers navigate financial challenges, whether due to cost-of-living pressures, personal setbacks or broader economic difficulties. It also highlights the industry’s focus on compassion-led customer service as the financial landscape continues to evolve.
With this renewed emphasis on early intervention and personalised assistance, the ABA’s updated guideline signals a step forward in aligning industry practice with customer needs, ensuring that help is accessible, timely and effective for Australians facing financial hardship.
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