Call goes out to industry stakeholders to help shape regulatory standards
An independent review of the Customer Owned Banking Code of Practice is officially live following the release of a consultation paper, with customers, advocates and other industry stakeholders being called on to help shape the sector’s regulatory standards and procedures.
The Customer Owned Banking Code of Practice is the industry code for Australia’s mutual banks and credit unions.
It publicly sets out the level of support subscribers will provide, going beyond legal requirements and reflecting the sector’s strong commitment to serving its customers’ interests.
It is subject to independent review at least every five years. This latest review was first announced last December.
“The consultation phase is critical to ensuring the Code remains robust and effective for the 5.4 million Australians who bank with a customer-owned bank,” independent reviewer Eva Scheerlinck (pictured, right) of Scheerlinck Consulting said.
She added: “While the Code is built on a foundation of putting people first, its effectiveness depends on it remaining meaningful in practice, not just well-intentioned in form.
“That’s why we are inviting individuals and organisations to share their first-hand experiences on where the Code delivers results, where it misses the mark, and how it must evolve to remain robust.”
Michael Lawrence (pictured, left), chief executive of the Customer Owned Banking Association (COBA), welcomed the independent review.
“For customer-owned banks, the Code’s true value is measured by the timely, meaningful support it provides to those who need it most – especially people navigating financial hardship, the aftermath of a natural disaster or experiencing vulnerability,” said Lawrence.
“This independent review is an important opportunity to strengthen our sector’s consumer protections and ensure they remain robust in today’s rapidly changing environment,” he added.
The consultation paper identifies several priority themes, including the increasing sophistication of financial abuse and scams, the role of banks in supporting customers experiencing vulnerability, and the effectiveness of hardship assistance at a time when rising cost-of-living pressures are placing greater strain on Australian households.
Read more: Banks and non-bank lenders form alliance to tackle financial abuse
The review is also examining how the Code supports inclusive and culturally safe banking for First Nations customers.
It sets out 18 key questions aimed at assessing whether the Code’s commitments are delivering genuine, day-to-day improvements in banking conduct and outcomes.
To inform this assessment, Scheerlinck is inviting formal submissions on how the Code is operating in a rapidly evolving financial environment, with responses due by 2 April.
