The Customer Owned Banking Association (COBA) and its members acknowledge the Australian Government’s response to the final report of the Parliamentary Joint Committee on Corporations and Financial Services’ inquiry into financial services regulatory framework in relation to financial abuse and are taking practical steps to disrupt financial abuse.
“We thank the inquiry for bringing financial abuse, a hidden form of family and domestic violence, to the forefront. Customer-owned banks are owned by the people they serve. Supporting customers’ financial wellbeing and independence is fundamental to that relationship, and financial abuse can undermine both,” COBA CEO Michael Lawrence said.
Banks and finance firms have joined forces with Australia’s leading financial safety by design expert, to prevent financial abuse, with the launch of the Financial Safety Alliance. The Financial Safety Alliance, founded by social enterprise Flequity Ventures, brings together the Australian Banking Association, the Australian Finance Industry Association, the Customer Owned Banking Association and Arca. The Alliance will provide lenders with the tools to integrate financial safety by design principles into their products and services to minimise the weaponisation of financial products and give victim-survivors the support they need.
Financial abuse involves a perpetrator exerting control over the victim-survivor’s access to money and resources. This type of abuse can be present in a range of situations, from domestic and family violence to the exploitation of groups more likely to experience vulnerability, such as older Australians and people with disabilities.
“Fundamentally, financial abuse systematically strips victims of their financial freedom. Customer-owned banks are dedicated to helping victim-survivors regain control of their finances and are actively working to detect financial abuse and stop perpetrators from misusing banking products and services,” he explained.
Recognising that reaching out for help can be incredibly difficult, and sometimes even dangerous, for victim-survivors of domestic violence, customer-owned Beyond Bank has transformed its branches into safe spaces. This means individuals can discreetly use meeting rooms to meet with lawyers or support workers, which provides a layer of safety if a perpetrator is monitoring their movements, as a visit to the bank can appear innocuous.
“Beyond Bank is committed to addressing the rising prevalence of financial abuse across Australia. Financial control is frequently used in coercive control to strip individuals of their autonomy and the resources needed to leave unsafe situations,” said Beyond Bank Chief Member Banking Officer Sophie-Scott Young.
To support customers seeking resources and support around financial abuse, Beyond Bank’s financial abuse webpages include a rapid-exit feature that enables users to leave the site instantly and redirect to a neutral destination like a Google Search webpage. This simple but important safeguard can help protect those whose online activity may be monitored by an abusive partner.
Additionally, the bank offers a confidential callback request form designed with privacy in mind. It includes a specific field for a “cover story”, ensuring that if a perpetrator answers the return call, the bank representative knows how to respond without raising suspicion.
“Sometimes it’s the hardest phone call that you will ever make, but it can be the turning point that sets you on the pathway out of an unsafe situation. Reaching out can feel daunting, but it is important to know that your bank is here to listen, support, and help you find a way forward,” Sophie added.
To date, 23 customer-owned banks have updated their terms and conditions publicly stating they don’t want their products to be weaponised, and that there will be consequences for those who misuse their products, with more mutual banks and credit unions actively implementing similar changes.
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For further information or to arrange interviews, please contact media@coba.asn.au.
The Customer Owned Banking Association is the industry body for mutual banks, credit unions and building societies. For almost 180 years our sector has put customers first, returning profits to more than 5 million Australians who put their trust in customer-owned banks.