There "is still considerably more to be done to turn around customer sentiment about the industry," Ian McPhee wrote in his in his eighth "independent governance expert report" for the Australian Banking Association, released yesterday.Two years ago the ABA engaged McPhee, a former auditor-general, to assist the ABA implement six thematic measures by banks to protect consumer interests.At a high level, McPhee wrote that he found "the industry's commitment to the package of initiatives ... well supported and worthwhile. "The reform program now needs to be embedded in the interests of bank customers, individual banks and general confidence in the banking sector."Responsibility for providing the necessary leadership and delivering on the reform program, he said, "now largely rests with the Chief Executive Officer of each bank and their executive teams. "Good progress has been made to date on the reform program and, in a rapidly changing world, it will be important for momentum to be maintained if the industry's goals are to be achieved."Progress on one scorecard in his final report is not so clear cut.Assessing the industry's state of play in implementing the Sedgwick Review recommendations on remuneration, only "one bank [Bank Australia] reported full alignment in the current quarter," McPhee said.He said that "the area that is least progressed relates to third party remuneration, reflecting the lead time required firstly to arrive at the principles agreed by the Combined Industry Forum and then  implementation of those principles."Some banks have reported ceasing particular arrangements, including volume bonus and campaign based bonus commissions with third party channels. "Some banks have also advised that they are making changes to the non-monetary benefits provided to mortgage brokers."Banks may also "publish more performance indicators and commentary to give greater transparency to their success in achieving the industry's goals of building trust and confidence," he said, a turnaround from ABA member doubt about this voiced in earlier reports.In contrast, the industry has decided not to proceed further with industry-level surveys of employees, as originally envisaged when the Edelman Intelligence survey of trust and confidence was being planned, McPhee said.