CALLS FOR RE-REGULATION WOULD ROLL BACK GAINS TO THE COMMUNITY. BANKS KEEN TO IMPROVE CONSULTATIONS Sydney, November 27, 2000: The Australian Bankers' Association (ABA) says that banks are keen to improve their consultations with the community. Calls by some stakeholders for the re-regulation of retail banking would roll back some of the community-wide gains delivered by Australia's safe, competitive and innovative banking and financial services sector. Jeff Oughton, acting chief executive of the ABA, said: "The Australian Bankers' Association (ABA) recognises that there are some differences between how banks see their economic and social contributions and the expectations of some parts of the community. This is an unsustainable situation and is being addressed as a high priority of the industry. " Frank Cicutto, the Chairman of the ABA, will soon announce a new program of community consultation. He has indicated that the ABA is happy to sit down with any politician, community or customer group to discuss any concerns. "Banking industry leaders do acknowledge that the industry needs to rebuild the trust and its reputation with some stakeholders. Government-imposed obligations are not the answer; banks readily acknowledge self-imposed obligations to the community. Mutual obligations also require all stakeholders to understand the competing demands on banking service providers. We need to be careful about how much of Australia's social welfare is shifted to major corporations, such as banks. "We recognise the community has some concerns about banking and financial services, including the move towards user pays and fees on electronic delivery of services to customers. "The ABA is conscious that the industry, not only listens, but needs to address these concerns, and better explain both the economic and social contributions of the financial services sector to the community at large." Services Mr Oughton said that today banking services are offered 24 hours a day at ATMs, through EFTPOS, telephone and Internet banking, saving time and money for customers. Not to mention having access to your cash at branches, community banks, in-store branches, through supermarket banking, the Post Office and other agencies. "Banking service providers are addressing the closure of high cost branch-based service by providing electronic alternatives as well as face-to face service by expanding their physical presence in regional and metropolitan Australia via third-party arrangements with the Post Office, supermarkets, pharmacies and other agencies. The Federal Government is also providing banking services in Rural Transaction Centres," he said. Low cost accounts Mr Oughton said low-cost accounts already exist in Australia. "Households, on average, pay fees of less than 90 cents a week for a full range of banking services, based on the Statistician's latest survey. "Individuals on low incomes (with disposable income up to $300 a week) are estimated to pay about 50 cents a week for the full range of services. The corresponding figure for the aged, disabled and other pensioners is around 40 cents a week. "A more recent survey of ABA members found for personal transaction services - including face to face, paper or electronic - the average for fee paying customers is between 25 cents and $2.30 per week - just 0.3% of average earnings. "Depending on the service provider, up to 75% of customers do not pay fees on personal transaction accounts. "And for those Australians who are financially disadvantaged, pensioners, students, disabled, there are substantial fee discounts and exemptions provided by most financial service providers." Finance Sector Employees Jeff Oughton said, "Surveys by the Australian Statistician show that finance sector employees had enjoyed jobs growth, low unemployment, strong wage gains and flexible working arrangements. Mr Oughton said: "Sector unemployment is roughly 2.5% - a figure among the lowest unemployment rates of any industrial sector - and any redundancies are handled sensitively with an emphasis on natural attrition and comparatively generous redundancy payments. "Wages of finance sector employees have been generally negotiated at around 4 % per annum during the past few years and now are about 20% more than paid by the "average" Australian industry to employees." For further information contact: Heather Wellard ABA PR Phone: 02 8298 0411 Mobile: 0409 830 439     ENDS NB: The Financial Sector Union has earlier today presented a petition to politicians in Canberra.