Many Australians may be paying more than they need to for basic banking services, according to the Banking Code Compliance Committee’s (BCCC) latest report, Back to Basics.
The report reviewed how banks deliver on their commitments to offer fair and affordable banking services, with a focus on basic, low or no fee accounts for people with low or no income.
Chair of the BCCC, Ian Govey AM, emphasised the importance of basic accounts.
"These accounts play a crucial role in financial inclusion, but they must be visible, accessible and compliant with the Code," Mr Govey said.
The BCCC found that while most banks offer these accounts, product names and feature disclosures often failed to indicate they were low- or no-fee options.
In some cases, customers may not have realised they were eligible, increasing the risk of unnecessary fees and undermining the intent of the Code.
"Clarity in communication is key – it directly affects how customers engage with essential banking services," Mr Govey said.
The report also found that not all banks offering low-fee accounts met the minimum criteria outlined in the Code, including required protections for eligible concession card holders.
The BCCC has called on banks to improve communication, ensure compliance with minimum standards, and enhance transparency to better serve people with low or no income.
"We expect banks to act now to strengthen protections and rebuild trust with customers who rely on these accounts the most," Mr Govey said.
About us:
The purpose of the BCCC is to monitor and drive best practice Code compliance.
To do this, it:
- examines banks’ practices
- identifies current and emerging industry-wide problems
- recommends improvements to bank practices
- sanctions banks for serious compliance failures, and
- consults and keeps stakeholders and the public informed.
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