A new banking code of practice started yesterday in Australia, with customers promised better service from their banks, who are now being told to treat customers fairly. Consumers have new rights and protections, and a regulator which the industry argues has ‘real teeth’.
Dr Rob Nicholls, a senior lecturer at the UNSW Business School, says the biggest change is the move to open banking, however he feels the change is more a subtle shift, than a seismic change. “The initial moves in this area are far from perfect, but they are a step in the right direction, and when we see the effects of the roll out, we can look for more improvements.”
Other changes introduced include the way small business will also be offered smaller and simpler contracts for their loans There are also new low-fee or no fee accounts to customers on lower incomes.