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BANKING AND FINANCIAL SERVICES OMBUDSMAN ANNUAL REPORT
Sydney, 10 November, 2005: The Australian Bankers’ Association (ABA) said while the number of new disputes dealt with by the Banking and Financial Services Ombudsman (BFSO) has increased by 4.2% compared to last year, retail banking transactions have increased by around 8%1.
It is also important to note that the coverage of the BFSO survey has increased by 16 members compared to the previous year, bringing the total membership to 64 as at June 2005.
The ABA was commenting on the BFSO’s Annual Report 2004-05 which was released this morning in Melbourne.
The increase in BFSO new disputes reflects the following:
- the increasing number of transactions undertaken by customers;
- the growth in the financial services market;
- BFSO membership has increased by 16 to a total of 64 - 31 banks and 33 non-banks, such as mortgage brokers, financial planners, debt collection agencies, foreign exchange providers and non-cash payment facilitators;
- increased public awareness of the BFSO’s services.
David Bell, Chief Executive of the ABA, said: “Clearly we would prefer to see less new disputes. The banking industry is committed to working on resolving complaints directly with customers, in a timely way, with the aim of reducing the number of disputes ending up with the Ombudsman.”
“Banks’ customers have been increasing their use of banking services, evident in the higher number of customer accounts and transactions.”
“Compared to the previous year, ATM transactions have increased by 4%, EFTPOS transactions are up by 9% and credit card transactions have risen by 6.7%. Millions of transactions flow through the system each day – credit cards alone accounted for 1.2 billion transactions last year and there are now 12.2 million accounts which is an increase of 6.4% on the previous year.”
“It was pleasing to see that of the 3 834 cases where an outcome was determined, 91.6% without the need for an investigation by the Ombudsman. This illustrates the banks are dealing quickly with these issues once they are referred to the bank’s dispute resolution staff and it led to a significant reduction in the number of BFSO investigations, compared to the previous year.”
“BFSO members use this data to examine ways they can improve products and services which they provide to customers.”
“The revised Code of Banking Practice is a clear signal that banks continuously work to lift their standards. The Code is a positive initiative for bank customers and will assist the dispute resolution work of the Ombudsman’s office.”
“The Ombudsman has much greater guidance and support in reviewing a particular case, and it will help in the decision-making on aspects of good banking practice.”
Notes for editors:
- Since the scheme was established in 1990, the Code of Banking Practice has been introduced and revised. The Code of Banking Practice requires the banks to provide personal customers with a free, external and independent process for resolving disputes and has been expanded to cover small business.
- The Ombudsman is independent and is not employed by the banks, but by its Board, which has an independent Chairman, equal numbers of consumer and bank representatives. It is a non-Government scheme and there are other similar schemes operating for people who have problems with their insurance company and their telephone company.
- To read the Code of Banking Practice – visit the ABA website: www.bankers.asn.au or free call the ABA on: 1800 009 180 and a copy will be mailed to you.
For further information:
Heather Wellard
Director, Public Relations
Phone: 02 8298 0411
Mobile: 0409 830 439
ENDS
1 The volume of transactions went up by around 8% in 2004-5 - based on available data sources for household transaction and deposit accounts - which includes ATM transactions, Internet banking, cheques and EFTPOS – the bulk of consumer transactions.
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