AFCA completes three-year program to enhance complaint handling

The Australian Financial Complaints Authority (AFCA) has announced the completion of its three-year Independent Review Response Program, a transformative initiative launched in response to recommendations from Treasury’s 2021 Independent Review.

The Independent Review Response Program redefined AFCA’s approach to external dispute resolution, cementing its position as a global leader in the field.

Major milestones and outcomes

Led by Deputy Chief Ombudsman June Smith (pictured above), the Independent Review Response Program program addressed 13 key recommendations aimed at enhancing transparency, fairness, and efficiency in AFCA’s operations.

During this period, AFCA also experienced unprecedented growth in consumer complaints, reaching nearly 105,000 in 2023–24 – double the volume recorded by its predecessor schemes.

Key outcomes of the Independent Review Response Program include:

• Enhanced guidance on complaint resolution, including addressing further issues in complaints and excluding wholesale client complaints.
• Stronger transparency in the roles of AFCA and regulators regarding systemic issues.
• A complete overhaul of systemic issues and funding models.
• Development of a new case management system and customer portals to streamline service delivery.
• Updated rules and operational guidelines, including greater clarity on responsible lending and small business lending.
• Independent audits of decision-making processes, with 90% of reviewed cases rated “excellent to good.”

Collaboration drives success

Smith highlighted the importance of stakeholder engagement in achieving these outcomes.

“This program has been a catalyst for change, fostering collaboration and innovation while enhancing our service delivery,” he said.

Looking ahead: AFCA’s next chapter

The completion of the Independent Review Response Program marks a new chapter for AFCA, which is now focusing on its next set of strategic priorities. These include enhancing service efficiency, reducing delays, and ensuring equitable access for all users.

“With stronger foundations and new capabilities, we are ready to tackle the challenges and opportunities that lie ahead,” Smith said.

For more information, access AFCA’s Independent Review Response Program Outcomes Report.

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