Over the past decade, as Western banks struggled to recover from the shockwaves of the global financial crisis, Australia’s banks have been basking in the warm glow of the country's stable economy and low unemployment. However, this environment enabled the banks to proceed with relatively little scrutiny. And, as revealed by the recent findings of the Royal Commission, it sometimes resulted in banks not always behaving in consumers’ best interests.
While bankers might protest they have not caused a financial crisis, consumers may disagree as they hear stories of poor advice on loans and mortgages, and headline-grabbing cases where charges were made to the accounts of deceased customers. The regulators are also finding themselves under scrutiny for not coming down hard enough on the banks when unethical behaviour came to light in the past. If customers cannot trust the banks with their finances, who can they trust?
