The Finance Sector Union will tell a Senate Inquiry into competition in banking that greater competition alone will not make banking better for consumers or bank employees, and that a cohesive long-term industry plan for banking is needed.
With banking an essential service to our nation, the Inquiry must look at the social and economic contribution we want banks to make to Australian society and factor that into an industry plan so we have a sustainable and responsible banking system in the future.
Banking is integrated into our ability as citizens to function in modern society, and it is impossible to opt out of the banking system. It is up to Government to ensure the system operates fairly and equitably for all stakeholders.
There is a real thirst for change amongst consumers and bank workers as we’ve seen by the level engagement with the Better Banking campaign. And while key aspects of the type of changes sought have been recently announced as part of a banking reform package – exit fees, switching, responsible lending initiatives such as credit card reform and better product information – the behaviour and culture of our big banks need to be reined in by a regulatory regime. Read more »
The new JAB bank campaign against high penalty fees imposed by banks is on the nose. I work in a bank. I earn $21 an hour before tax. I have a home loan, with a standard variable rate.
To keep my job, which is threatened on an almost daily basis, I must make roughly $400 per day in revenue. To put this in context, if I open a new credit card account, or upgrade an existing account to a higher fee option, that’s $50 revenue for my employer. So if I process 8 applications per day, I’m sweet.
Meanwhile, the bank is doing it tough. When we’re short-staffed, we rarely employ a casual for the day because that costs too much money. So we struggle to serve our customers as best we can while they hurl abuse for interest rate hikes and fee gouging. Read more »
As the Liberal Party scrambles to dismiss Shadow Finance Minister Joe Hockey’s comments that suggest Australian banks must curb interest rate rises and show greater fidelity to the Reserve Bank’s official movements; bank workers and customers across the country are calling for further reforms for Australian banks.
Since the beginning of this year, the Better Banking charter has received strong levels of support from bank industry workers and customers alike. Our survey in April 2010 showed that 79% of Australians want to see a tougher response from the Government towards the banks passing on interest rates.
But this is not all that is required to improve banking in Australia, to make this essential service fairer for all. We’ve got high levels of debt that are unchecked by banks set on reaping record profits, banks continually engage in linking remuneration to sales volumes of debt products, banks continue to offshore jobs rather than investing in developing Australia as a financial hub by supporting jobs and skills here. Read more »
