Cox states that banks also need to implement systems to support compliance.
Callaghan also noted in his review that self-reported bank code violations increased in 2019-20.This is by the Royal Commission and the Australian Health Regulatory Agency Commonwealth Bank‘sand NAB self-assessment..
“resulting in, [the banks] We needed to rebuild our trust in the community, “Callahan wrote.
‘Looks like some [banks] We consider the codes to be a burden and are comparable to other regulatory and legislative requirements imposed on them.
“Another view brought about through consultation [with banks] The bank’s aggressive and widespread response to assisting customers during the COVID-19 pandemic has boosted their reputation in the community, “Callahan wrote.
In that regard, the review specifically mentions the introduction of mandatory credit reporting and the importance of communicating to consumers the impact on credit reporting if consumers accept or reject hardships and collection arrangements. doing.
The other two themes of Callaghan’s recommendations were that customers were enthusiastic about digital banking services. This includes facilities that you buy now and pay later. This is the change banks are seeing since the advent of open banking in Australia.
Open banking increases customer liquidity and provides banks with the ability to share data such as transaction history and account balances with third parties accredited by the Australian Competition & Consumer Commission.
The bank code has been rewritten following the last independent review of 2017 after the Royal Commission. Callaghan said it’s an improvement over the previous 2013 version, but there’s still work to be done.
“The banking code does not require a complete review or rewrite, but it can be improved in key areas and significantly enhance compliance,” he said.
“In consultation with each ABA member bank, it seems that the code is primarily considered a regulatory burden. This is comparable to other regulatory and legal requirements imposed on them.”
Anna Bligh, CEO of ABA, said it was a time of rapid change in the banking sector and that there was code needed to reflect that.
“Customers remain central to everything banks do, and in this review, a enforceable bank code is central to the bank-customer relationship, regardless of the economic, policy, or regulatory changes we face. I guarantee you will continue, “she said.
The ABA will respond to the report and begin drafting changes to the code early next year.
Bank report card: I have to work harder
Source link Bank report card: I have to work harder