Banks and non-bank lenders form alliance to tackle financial abuse

“Through this coordinated action, Australia is setting a new benchmark for how financial institutions can work together to prevent abuse and safeguard customers. “Australian banks are taking world-leading steps to help embed financial safety by design principles in banking products, helping stop abuse before it occurs.”

For non-bank lenders, AFIA said the alliance would support the application of safety-by-design thinking to products such as personal loans, car finance and other forms of credit commonly used alongside mortgages.

“Australia’s finance industry stands united to deliver strong, consistent protections and pathways to support those experiencing financial abuse,” said Diane Tate (pictured top, second from right), chief executive of the Australian Finance Industry Association. “This joint initiative puts customer wellbeing at the centre of innovation, strengthening trust across our industry through embedding safeguards that put people first.”

COBA indicated that customer-owned institutions, which often have deep links in local communities and regional markets, see the alliance as a way to standardise responses to financial abuse across the system.

“Customer-owned banks witness the devastating impact of this insidious issue daily, which is why we are joining forces to address it on a system-wide level,” said Michael Lawrence (pictured top, far right), chief executive of the Customer Owned Banking Association. “Customer-owned banks are deeply committed to the people and communities we serve, and this alliance will empower the entire industry to better identify abuse, stop perpetrators from misusing banking products and ultimately protect customers.”