An industry-wide review is calling for Australians to help shape how customer-owned banks serve their communities.
Public consultations have opened on an independent review of the Customer Owned Banking Code of Practice (the Code) – a key framework guiding ethical and consumer standards across Australia’s mutual banking sector.
The review – led by governance consultant and former superannuation executive Eva Scheerlinck, principal of Scheerlinck Consulting – is examining whether the Code remains effective and relevant for the 5.4 million Australians who bank with customer-owned institutions.
A consultation paper, released on Thursday (5 February), called for submissions from customers, consumer groups, and industry stakeholders ahead of the 2 April deadline.
The feedback will inform recommendations on how the Code should evolve to meet contemporary expectations of fairness, inclusion, and responsibility in banking.
Priorities under review
The consultation paper identifies several critical areas for consideration, including how banks support customers facing vulnerability and financial hardship, responses to financial abuse and scams, and the development of inclusive and culturally safe banking practices for First Nations customers.
Scheerlinck said the consultation phase was essential to ensuring the Code remained “robust and effective” for its members.
“While the Code is built on a foundation of putting people first, its effectiveness depends on it remaining meaningful in practice, not just well-intentioned in form,” she said.
“That’s why we are inviting individuals and organisations to share their firsthand experiences on where the Code delivers results, where it misses the mark, and how it must evolve.”
Scheerlinck brings extensive background in code governance, having established the Australian Institute of Superannuation Trustees’ Governance Code in 2017 and supervised its 2022 review.
She also chairs the Code Authority for the Fundraising Institute of Australia.
Strengthening standards across the sector
Customer Owned Banking Association (COBA) CEO Michael Lawrence said the review offered an opportunity to strengthen the sector’s reputation for customer-first conduct and accountability.
“For customer-owned banks, the Code’s true value is measured by the timely, meaningful support it provides to those who need it most – especially people navigating financial hardship, the aftermath of a natural disaster or experiencing vulnerability,” Lawrence said.
“This independent review is an important opportunity to strengthen our sector’s consumer protections and ensure they remain robust in today’s rapidly changing environment.”
The review will also assess the performance and structure of the Customer Owned Banking Code Compliance Committee (COBCCC), which monitors adherence to the Code and promotes best practice across participating institutions.
Building trust through modernisation
The Customer Owned Banking Code of Practice is a voluntary, industry-wide commitment that sets higher standards than the law requires for member institutions, guiding how they engage with customers on transparency, fairness, and accountability.
Under its terms, an independent review is required at least every five years to ensure ongoing relevance and rigour.
With rising cost-of-living pressures testing household finances and digital fraud on the rise, the review comes at a pivotal time for the customer-owned banking sector.
COBA stressed that a renewed Code would help maintain public trust and reaffirm the community focus that distinguishes mutual banks and credit unions from larger listed institutions.
[Related: Banks and lenders form national alliance to tackle financial abuse]
