Australian Securities & Investments Commission highlights Better Banking for Indigenous Consumers project delivering AUD 93 million refunds and migration of one million customers to low-fee accounts

The Australian Securities & Investments Commission (ASIC) published an opinion article by Commissioner Alan Kirkland outlining outcomes from ASIC’s Better Banking for Indigenous Consumers project, which has led banks to commit to refund more than AUD 93 million to low-income Australians who were experiencing harm in high-fee accounts. The project has also driven the migration of around one million low-income customers to low-fee accounts. ASIC says the migrations are expected to avoid around AUD 50 million in annual future fees, alongside changes that have made it easier for more people at more banks to open a low-fee account. The work was run through ASIC’s Indigenous Outreach Program, which engages with financial counsellors and advocates in regional and remote communities to identify and respond to issues affecting Aboriginal and Torres Strait Islander consumers. Examples cited include refunds of more than AUD 1,200 in fees for a pensioner, more than AUD 5,200 for a jobseeker including more than AUD 4,160 in dishonour fees, and more than AUD 2,600 in overdraw fees for a single parent. ASIC signals it will continue pushing financial institutions to improve outcomes for consumers and notes further refunds are expected, while encouraging customers to review their statements and ask their bank about charges and eligibility to switch to a low-fee account.