Banks have more work to do to meet their goals of inclusivity and accessibility, according to a new report.
The Banking Code Compliance Committee has released a review of banks’ compliance with Part 4 of the Banking Code, which includes obligations covering access, dealings with vulnerable customers and the provision of basic accounts.
The report makes 29 recommendations, including a call for banks to take a more flexible approach to identifying vulnerability and to test the effectiveness of their accessibility options through a process of continuous improvement.
The BCCC said banks have invested “significant resources” to improve their capabilities in these areas but progress is inconsistent and more needs to be done. It said there were gaps in staff training and service delivery, and inadequate monitoring.
The report cites customer advocacy groups reporting examples of domestic violence involving breaches of privacy by banks; inclusivity barriers experienced by non-English speakers; Aboriginal and Torres Strait Islander people living in remote communities having to travel hundreds of kilometres to a branch for identification; and people on low incomes not being told about their eligibility for a basic (no or low-fee) transaction account.
Among other recommendations, the BCCC said banks should expand their lists of acceptable referees to overcome barriers to customer identification in Aboriginal and Torres Strait Islander communities.
It said staff should be encouraged to offer interpreter services; banks should identify customers eligible for a basic account and conduct outreach, rather than wait for customers to disclose low income; and banks should continue to look for ways to detect financial abuse, as they do with fraud and scams.
It recommended that banks should develop an industry-wide approach to providing banking services to customers in prison, where internet and telephone access, as well as access to documents, is limited.
It said it would be good practice to allow the use of non-binary gender denomination.
The BCCC said the industry should work together more. It recommended that banks that identify industry-wide issues should share information with their peers.
“Banks should not treat innovative solutions as competitive advantage in matters relating to vulnerability.”
The Hayne royal commission focused on this area of banking activity, highlighting the hardship experienced by customers in vulnerable circumstances as a result of industry misconduct. The Banking Code was amended in 2020, following a royal commission recommendation that banks increase protections in this area.
The BCCC said best practice in this area includes engagement with community organisations to inform planning. One regional bank established a partnership with a disability employment service.
Among the poor practices identified in the review, the BCCC said one bank’s collections department called a customer with limited English on numerous occasions without ever offering an interpreter service.
It found another bank where font line staff must seek internal approval to engage an interpreter.
Banks closing branches in regional communities have put agency arrangements in place with Australia Post without ensuring that these arrangements support the needs of local small businesses, such as cash handling.
It found that some banks put up barriers or had inconsistent approaches when dealing with financial counsellors, community legal