The Australian Banking Association (ABA) has unveiled its updated Banking Code of Practice, which introduces advanced protections for customers that extend beyond existing legal requirements.
Aimed primarily at small businesses, guarantors, and vulnerable customers, the new provisions are designed to fortify customer rights and service quality in the banking sector.
The revised banking code, developed after extensive consultation with stakeholders and approved by ASIC in June 2024, broadens the definition of small businesses, now including an additional 10,000 small enterprises under its protection.
This expansion is significant for those navigating financial difficulties, as it extends additional support and clarifies the assistance banks will offer to help customers regain financial stability.
In a media release, ABA CEO Anna Bligh (pictured) highlighted the robust nature of the new code.
“This new rule book is about ensuring that when customers interact with their bank, they are getting the highest level of service and care. It sets new standards and clearer expectations for service, integrity, and accountability across the entire banking industry,” Bligh said.
The banking code also enhances inclusivity, with new commitments to support non-English speakers.
Banks will now organise or refer these customers to free services like interpreters, AUSLAN, and National Relay Services, ensuring that all customers can engage with financial services equitably.
Rachna Madaan Bowman, head of financial wellbeing at South East Community Links, praised this initiative.
“Having access to independent interpreters will give people an opportunity to engage with equality, dignity, and respect,” Bowman said.
Key updates to the code include:
Luke Achterstraat, CEO of the Council of Small Business Organisations Australia, highlighted the practical impact of the banking code.
“Strong, harmonious, and trusting relationships between financial institutions and small businesses are particularly important in a challenging environment,” Achterstraat said.
ASIC previously approved the code in December 2019 and updated it in January 2021.
Owned by the ABA, the code’s rules are binding on its members and integral to banking contracts.
Although ASIC doesn’t enforce the code, it ensures the code’s development is transparent, involving consultations with stakeholders like consumers and small businesses.
It is supported by robust compliance mechanisms overseen by the Banking Code Compliance Committee, which can enforce compliance through various sanctions.
The 2025 Banking Code of Practice can be accessed here.
View the code video here.
