Weekly update: 14.04.23

Banking industry launches new campaign to help customers beat the scammers

This week the ABA launched a major campaign to raise awareness of a series of scam scenarios and provide customers with tools to beat the scammers. With the tag line ‘hear the alarm bells’, the campaign highlights the importance of customer vigilance against this criminal activity. For more information and to view the campaign, see here.

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“One of the things they’re very clever at is creating a sense of urgency, making you feel I’ve got to do it now or the money’s going to be drained out of my account. The best thing to do in those circumstances is just stop, take a breath and think because your bank will never ever call you and tell you to transfer money out of your account” 

– ABA CEO, Anna Bligh on the scams campaign.

Parliamentary Update:

• Home Affairs Minister Clare O’Neil told the SMH that the Federal Government had commenced a series of cybersecurity exercises with banking and finance sector regulators.
• Treasurer Jim Chalmers has travelled to Washington DC for a series of meetings with G20 Finance Ministers, the IMF, the US Secretary of the Treasury Janet Yellen, amongst many others. He spoke to media about the heightened uncertainty for the global economy and preparations for the upcoming Federal Budget.
• Foreign Minister Penny Wong announced progress towards resolving a trading dispute with China on Australian barley. The Foreign Minister also said progress on the Australian wine dispute may follow.
• Assistant Minister Andrew Leigh wrote an opinion piece in the Daily Telegraph on unfair contract terms.

“Robbers don’t come with a sawn off shotgun anymore. They come through your phone, and banks are putting their resources where their customers are. And that’s in the digital world” 

– ABA CEO, Anna Bligh on bank branches.

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Policy Update:

• The ABA CEO attended a roundtable organised by the Australian Government’s Net Zero Taskforce. The Roundtable discussed the challenges and opportunities for regional communities in the transition to net zero, and how both Government and industry could support the transition. 
• The ABA has been liaising closely with members to proactively plan for and understand the impact of Tropical Cyclone Ilsa, which is currently approaching the inland of Western Australia. Some banks have already activated their Emergency Assistance packages for communities and properties that may be affected as the cyclone travels through the region.

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Regulatory Update:

• ACCC Chair Gina Cass-Gottlieb spoke on proposed changes to Australia’s merger regime. 
• APRA has released an updated timeline for the implementation of the new cross-industry Prudential Standard CPS 230 Operational Risk Management (CPS 230).
• RBA Deputy Governor, Michele Bullock, appeared at the WEAI Monetary Panel in Melbourne.
• ASIC Commissioner Danielle Press authored an article in AICD’s Company Director magazine on good practices for directors overseeing whistle-blower programs. 

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Economic Update:

• Interest paid on deposits has increased substantially since the first interest rate increase in May 2022. In the March quarter of 2022 ADIs paid $2.7b in interest on deposits, this increased to $18.8b in the December quarter of 2022 – an increase of $16.1b. In comparison, interest charged on housing in the March quarter of 2022 increased by $9.3b during the same period, from $13.7b in the March quarter of 2022 to $23b in the December quarter.
  
  This shows that increases in the cash rate are being passed on by ADIs to deposit holders more quickly than to mortgage holders.

Deposit interest expense & Housing loan interest income, ADIs, December 2013 – December 2022 $m

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Communications and Media Update:

• To coincide with the launch of the ABA’s anti-scams campaign, a media release was issued and a series of interviews took place, including ABC radio and 2GB.
• ABA CEO Anna Bligh also discussed the Federal Government’s plan to conduct cybersecurity exercises, strongly welcoming the initiative. “Given the interconnectedness of the banking, finance and payments systems to the whole economy, sector-wide cyber resilience exercises are critical for the safety of all Australians and the finance sector itself, so these exercises are very welcome,” Ms Bligh said in a statement to the Sydney Morning Herald.

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Upcoming Events:

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Submissions Lodged:

• AUSTRAC Industry Contribution 2022-23
• 2023-2030 Australian Cyber Security Strategy

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Upcoming Submissions:

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Selected Media:

• SMH – ‘Consider what damage could be caused’: Government launches cyber ‘war games’ for major banks
• Mortgage Professional Aus – New campaign launched to help customers spot a scam
• The Examiner – Australian Banking Association launches scamming campaign
• Aus Fintech – Australian Banking Association launches new campaign to help customers beat the scammers
• SMH – Banks brace for refinancing ‘avalanche’ as cheap fixed-rate loans expire
• AFR – Economists urge Treasury to preserve RBA’s independence
• AFR – Top lawyers warn merger reforms could slow deals, add to cost