An independent review of the Customer Owned Banking Code of Practice has kicked off, with a public consultation now open and set to reshape conduct and consumer protections across customer-owned banks, mutuals, and credit unions.
The move follows a broader regulatory reset affecting smaller lenders, with the Customer Owned Banking Association (COBA) recently backing efforts to streamline financial oversight through an updated Regulatory Initiatives Grid.
“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 left) of Scheerlinck Consulting said, highlighting the need for real‑world feedback from customers, advocates, and industry stakeholders.
She added that, “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.”
For brokers, the review will focus on themes directly impacting home loan customers, including the rise of financial abuse and scams, how banks support vulnerable borrowers, and whether hardship assistance is working as cost-of-living pressures bite – as ABS data show household living costs rose 2.3% to 4.2% in the year to December, even as mortgage interest charges fell 6.4%. The review is also examining how the code supports inclusive and culturally safe banking for First Nations customers.
COBA CEO Michael Lawrence (pictured right) said the process will ultimately “deliver better customer outcomes and lift the standard for the entire industry.”
For “people navigating financial hardship, the aftermath of a natural disaster or experiencing vulnerability,” Lawrence said, “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.”
The consultation paper poses 18 key questions on whether the code’s promises translate into day‑to‑day banking behaviour and outcomes, with formal submissions due by 2 April.
Mortgage brokers dealing with customer-owned institutions may wish to review the paper and consider contributing feedback, particularly on hardship processes, turnaround times, and communication standards.
Further information, including the consultation paper and submission details, is available via the Customer Owned Banking Association’s Code review page.
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