Non-bank and specialist lenders that sign up to a new industry code are now bound by common standards on hardship support, scam protection, and the use of artificial intelligence (AI). The Australian Finance Industry Association (AFIA) Finance Industry Code of Practice came into force on 1 October.
AFIA describes the code as an Australian first, bringing non-bank and specialist lenders under one set of customer standards across consumer and business finance products. That matters for brokers who place clients with lenders outside the major banks, because the framework sets out a consistent baseline for how signatories should treat those customers.
Non-banks accounted for 7.2% of new residential lending through the broker channel in 2025, up from 6.5% a year earlier, according to the Mortgage and Finance Association of Australia's inaugural State of Mortgage & Finance Broking Report.
Signatories commit to stronger support for customers in financial hardship or vulnerable circumstances, and to tighter protections against scams, fraud, privacy breaches, and financial abuse. The standards also set expectations for plain-language product information, prompt complaints handling with access to dispute resolution, and safeguards on cybersecurity and the responsible use of technology and AI.
They apply across a product's life, from how it is designed to how it is sold and serviced.
AFIA chief executive Diane Tate (pictured) said the code was the product of years of work. She framed it as the non-bank sector choosing to lead from the front.
"Good regulation provides an essential foundation, but responsible industries must be prepared to go further," Tate said.
She added that the framework would keep evolving as customer expectations, technology, and risks change.
Membership is open to AFIA members in consumer finance, novated leasing, small business lending, insurance premium funding, and low-cost credit contracts. Large commercial lenders can choose to join. Members already covered by an equivalent code, such as the Banking Code of Practice, are not required to sign.
AFIA has launched an online AFIA Code Hub that lists current signatories.
The Finance Industry Code Compliance Committee (FICCC) will monitor compliance with AFIA's code. Its independent chair, Tim Grimwade, urged lenders outside the code to join.
"Non-bank lenders and other finance industry participants that are serious about playing their part in building trust, transparency and fairness in the industry need to join the AFIA Code to demonstrate that commitment to their customers," Grimwade said.
The Code Hub's signatory list will show which non-banks have made the commitment.
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