OPINION: The lessons of the Banking Royal Commission must not be forgotten
Published in the Herald Sun, 16 September, 2025. Opinion by Stephanie Tonkin, CEP Consumer Action Law Centre
The Banking Royal Commission was a watershed moment for Australians.
It shattered public trust in some of our biggest and best-known institutions and exposed systemic failures that harmed countless customers.
In the years since, banks have made real progress in implementing customer protections, leading innovation and improving culture. But recent events suggest that some financial institutions may be at risk of forgetting the lessons the royal commission was meant to teach.
On Monday, our corporate regulator ASIC announced that ANZ admitted to widespread misconduct affecting nearly 65,000 customers. As a result, ASIC and ANZ will ask the Federal Court to impose penalties of $240m.
ASIC reports that total penalties are the largest by ASIC against one entity. ANZ’s alleged failures – failing to respond to customer hardship notices, failing to pay promised interest, and charging fees to deceased customers – are not isolated.
ASIC’s 2024 report Hardship, Hard to Get Help revealed industry-wide conduct that failed Australians when they needed support most.
These are not minor oversights and should not be written off as system glitches. Consumer Action’s financial counsellors observe these poor practices affecting real people, often when they are at their most vulnerable.
The Big Four banks are among the most resourced institutions in the country. System failures of this magnitude are unacceptable. Technology should be an enabler of care, not a barrier to it.
The details of ASIC’s proceedings are also a stark reminder that financial services are not delivered in a vacuum – they intersect with deeply personal life events. Customers seeking help are often navigating grief, illness, financial hardship or family violence.
In these moments, banks are not just service providers – they are lifelines. The law requires them to act with care. The community expects even more.
The commission’s findings cannot be in the rear-view mirror. They must remain front of mind, guiding every decision, system and cultural shift within our financial institutions.
Australians deserve banks that remember the past, act in the present and build a future where care is not optional or IT system dependant – it’s foundational.
ENDS
Media contact: Mark Pearce mark@consumeraction.org.au Tel: 0413 299 567
