The Australian Banking Association (ABA) has released an updated industry guideline to help banks better support customers facing financial difficulty – aiming to make the process more compassionate, proactive and easier to navigate.
The new guidance builds on existing legal and Code of Practice obligations, reinforcing the importance of early outreach, tailored solutions, and practical communication.
“When people are doing it tough, the last thing they need is a complicated or stressful process to get help,” said ABA CEO Anna Bligh (pictured), in a media statement.
“This guideline is about making it easier for customers to reach out and know they’ll be treated with care and compassion.”
Banks are being encouraged to spot early warning signs and respond promptly to hardship requests – even before a repayment is missed.
“Banks are making it a priority to spot the warning signs early, have better conversations with customers, and offer practical, tailored support that works for each person’s situation,” said Bligh.
“We want every customer to know, if you’re struggling, your bank is ready to help, you don’t have to tough it out on your own.”
ABA’s guideline includes a wide range of practical steps for banks, such as simplifying documentation requests, using plain English communications, providing support across multiple channels, and recognising signs of vulnerability – including family violence or illness.
Examples of assistance banks may offer include fee waivers, payment deferrals, reduced repayments, term extensions, or tailored solutions for small businesses.
Banks are also urged to train staff to handle hardship requests with greater sensitivity and cultural awareness, particularly for vulnerable customers, and to provide access to interpreters and financial counselling services.
While not legally binding, the industry guideline reflects what ABA considers “good industry practice,” and most major banks are expected to adopt it.
It also complements the Banking Code of Practice and the National Credit Code, both of which set enforceable standards around financial hardship protections.
ABA plans to review the guideline every three to four years – or sooner if major legal or social changes arise.
Prior to the industry guideline, ABA released an industry statement supporting Aboriginal and Torres Strait Islander peoples. ABA said the industry is working to deliver culturally informed financial support to improve long-term financial resilience among Indigenous Australians.
