Finance
Australians Stick With Their Banks Through Years of Scandal
Regulators hope new competition will encourage better behavior from giant lenders.
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Over the past several years, Australia’s financial industry has been gripped by a series of scandals involving everything from mortgages to investment advice. A sweeping government-ordered inquiry into misconduct lambasted the industry for letting down consumers.
In an effort to force big banks into line, policymakers want to give consumers a chance to vote with their deposits. The Australian Prudential Regulation Authority, the watchdog for lenders, licensed five new online banks in 2019, with more expected this year. In July an “open-banking” initiative will make it easier for people to take their money elsewhere. For now, though, customers seem unmoved.