Powered by MOMENTUM MEDIA
the adviser logo
Lender

NAB announces support team for vulnerable customers

by Hannah Dowling5 minute read
NAB

The big bank has responded to the ABA’s new Banking Code of Practice with the introduction of its Customer Support Hub.

National Australia Bank (NAB) has announced the launch of a new “specialist team of bankers” dedicated to recognising and responding to vulnerable customers.

The new team has been created in response to the Australian Banking Association’s (ABA) new Banking Code of Practice, which ensures lenders “take extra care with customers who may be vulnerable”.

The new code, which came into effect on 1 July 2019, brought in a higher standard of customer care when dealing with individuals and small-business customers – particularly vulnerable customers, co-borrowers and guarantors.

Advertisement
Advertisement

NAB chief legal and commercial counsel Sharon Cook said that the specialist team was established to detect early stages of financial hardship, from scams to fraud, domestic and family violence, elder abuse, low financial literacy and gambling addiction, as outlined under the Banking Code of Practice.

Ms Cook said the newly created team provides support “well beyond that of traditional financial hardship assistance”.

“This Support Hub enables us to be more proactive by identifying hurdles our customers are experiencing and providing them with extra care,” Ms Cook said.

Ms Cook revealed that the Support Hub went through a trial process in June, which helped more than 500 customers.

“By referring customers to community partners, we have been able to provide much needed assistance to those experiencing elder and financial abuse, mental illness and credit card debt,” she said.

“We have also, at the request of customers, applied restrictions on gambling transactions on credit or debit cards that prevent them going further into debt.

“We have also set up a dedicated Indigenous Customer Service Line for our Aboriginal and Torres Strait Islander customers living in remote locations, which is making a huge difference to how they access banking services.”

Elder financial abuse on the rise

The announcement of the specialist team also comes after the ABA called on the government to act on increasing cases of elder financial abuse.

According to the ABA, around one in 10 older Australians experience elder abuse in any given year, with the prevalence of neglect possibly higher.

Additionally, according to new YouGov research released by the ABA, 57 per cent of Australians are worried about a loved one experiencing financial abuse.

Australian Banking Association CEO Anna Bligh commented: “The growing problem of elder financial abuse in our community is an uncomfortable truth that every Australian should be aware of.

“Bank staff have told me stories of attempting to intervene in situations where they see money drained out of the accounts of pensioners, often for items they are not using such as holidays or expensive jewellery, but the victim is unwilling or unable to report what is really happening.” 

She added: “Governments need to establish a national online register of Power of Attorney Orders, standardise laws, and legislate a designated safe place to report elder financial abuse.”

The move to identify and reduce financial abuse has been a key point of focus for the lending market, and has seen flow on effects to the broking industry, too.

 

For example, earlier this year the ABA, the MFAA and the FBAA agreed on a "common approach" to identifying financial abuse in a co-borrower arrangement, with training modules to help brokers identify customers that may be suffering from financial abuse expected in due course.

It is believed that, once finalised, the training will be rolled out by both the MFAA and the FBAA to broker members.

[Related: Prospa launches education initiative]

nab

Hannah Dowling

Hannah Dowling

AUTHOR

Hannah Dowling is a journalist for The Adviser and Mortgage Business.

JOIN THE DISCUSSION

You need to be a member to post comments. Register for free today

MORE FROM THE ADVISER

PhilipLowe mb

RBA attempts to curb runaway inflation

On Tuesday (5 July) the Reserve Bank of Australia (RBA) announced at its monetary policy meeting it will increase the...

READ MORE
flood qld suburbs ta

Home loan support offered to NSW flood victims

Widespread persistent heavy rain over large swathes of NSW over the weekend and into Monday (4 July) has caused major...

READ MORE
Dr Jane Rennie CPA

Accountants to decline ‘capacity to repay’ requests

The leaders of CPA Australia, the Institute of Public Accountants (IPA), and the Chartered Accountants Australia and...

READ MORE
magazine
Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more