📰 Customer owned banks reduce breaches but must remain focused on lending obligations
Customer owned banks reduce breaches but must remain focused on lending obligations
The latest report from the Customer Owned Banking Code Compliance Committee (COBCCC) highlights a 26% reduction in reported breaches of the Customer Owned Banking Code of Practice (the Code), signalling progress in compliance efforts.
The report, based on data from customer owned banks (COBs) for the 2023-24 reporting period, attributes this decline to stronger compliance frameworks, improved systems, targeted training, and cultural shifts within COBs.
However, key challenges remain, particularly regarding diligent and prudent lending.
Chair of the COBCCC, Ms Danielle Press, welcomed the improvements while reinforcing the need for continued vigilance.
“The reduction in breaches is encouraging and reflects the sector’s investment in better compliance measures,” Ms Press said.
“But an increase in the number of customers affected by lending-related breaches highlights the need for COBs to remain focused on their obligations.
“With cost-of-living pressures continuing to impact households, responsible lending practices and minimising the number of affected customers must be a priority.”
The report also highlights the need for COBs to be clearer when communicating product information.
While COBs have made progress in improving accessibility, breaches relating to unclear or ambiguous terms, conditions, and fees remain a concern.
“Transparency is fundamental to customer trust. COBs must ensure that product information is clear and easily understood to prevent confusion and reduce complaints,” Ms Press said.
The COBCCC emphasised that even small lapses in compliance can have significant repercussions for customers and the sector.
“This report serves as a reminder that maintaining strong compliance frameworks and a customer-first approach is essential. We urge COBs to reflect on these findings and continue building on their progress to uphold the commitments of the Code,” Ms Press said.
The COBCCC will continue working with COBs to support ongoing improvements and ensure compliance with the Code’s obligations.
About us:
The Customer Owned Banking Code Compliance Committee is an independent body that monitors compliance with the Customer Owned Banking Code of Practice. Its purpose is to ensure consistent and high-quality service standards are maintained for the benefit of customers.
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