A review of Australia's financial counselling services has recommended additional funding for the sector be provided by the big banks, with the aim of doubling consumer access to services over the next four years. The Department of Social Services has released a report prepared by Louise Sylvan, former ACCC deputy chair and commissioner at the Productivity Commission, on the coordination and funding of the country's financial counselling services. Sylvan has recommended that the initial bank contribution be A$20 million, beginning in the current financial year. In response to the review, the Australian Banking Association said "banks support industry funding sourced from both the financial sector and other industries that may contribute to financial hardship". Surprisingly, the Financial Review misreported the story as yet another skirmish in the "war" between the government and the banks, with the government "being urged to force the big banks to fund a doubling of financial counselling". Sylvan's review was prompted by a recommendation of the Hayne royal commission that the financial counselling sector receive predictable and stable funding. Hayne said financial counselling was a necessity, "adding strength to customers who are otherwise disadvantaged in disputes with financial services entities". There are an estimated 500 financial counsellors who provided face-to-face services to 125,000 people and took 180,000 Debt Helpline calls in 2018. Sylvan found that the service provided by counsellors was high quality. Commonwealth, state and territory government are the main funding source for the sector, with some additional funding from philanthropic organisations. Sylvan recommended that any funding from banks should be additional funding and that there be no reduction in government funding. Sylvan said: "The vast majority of stakeholders consulted during the review highlighted the unmet demand for services, which evidence suggests is as much as double current service provision." Insufficient funding also limits data collection and analysis and innovation in service delivery. The rationale for asking banks to contribute to funding is that "in part, demand pressures are contributed to by industry, a function of the complexity and product opaqueness to which Commissioner Hayne referred." Sylvan said financial services companies derive economic value from financial counselling services - another reason they should contribute to the sector funding. The report recommends better coordination of services, with a national approach implemented by a single independent body responsible for a national cooperative effort. It says there is a need for small business financial counselling.