👤 Challenges for Customers

Key Issues

• ›Digital-only services excluding older and rural populations
• ›Complex onboarding and identity verification
• ›Language barriers in financial products
• ›Accessibility gaps in mobile banking apps

Impact

1.4 billion adults globally remain unbanked. 23% of Australians over 65 struggle with digital banking. Average account opening takes 12 minutes digitally vs 3 minutes at neo-banks.

Key Issues

• ›Rising interest rates impacting mortgage holders
• ›Fee transparency and hidden charges
• ›Insurance affordability crisis (esp. home, health)
• ›Debt trap from buy-now-pay-later services

Impact

Average Australian mortgage repayment increased 42% since 2022. 35% of BNPL users missed payments in 2025. Home insurance premiums rose 28% in climate-affected regions. Financial hardship applications up 60%.

Key Issues

• ›Fear of data breaches after high-profile incidents
• ›Unclear consent mechanisms for data sharing
• ›Scam and fraud sophistication (deepfake, AI-powered)
• ›Limited control over personal financial data

Impact

Australians lost $3.1B to scams in 2025 (up from $2.7B in 2024). 68% of consumers concerned about banks sharing data under Open Banking. AI-powered scams now account for 40% of financial fraud.

Key Issues

• ›Confusing insurance policy terms and exclusions
• ›Superannuation fee structures lack clarity
• ›Mortgage comparison difficulty across providers
• ›Investment product suitability concerns

Impact

47% of insurance claims disputes relate to policy misunderstanding. Average Australian holds 3.2 super accounts, losing $2,600/year in duplicate fees. Only 12% of consumers feel confident comparing financial products.

Key Issues

• ›Slow insurance claims processing (natural disasters)
• ›Limited recourse for small business banking disputes
• ›Inconsistent hardship support across providers
• ›Lack of real-time claim status visibility

Impact

Average home insurance claim takes 6.2 months to resolve post-disaster. AFCA received 96,000+ complaints in 2024–25 (record high). Only 34% of customers rate their claims experience as satisfactory.

Key Issues

• ›Post-Royal Commission trust rebuilding stalled
• ›Executive remuneration vs customer outcomes disconnect
• ›Branch closures reducing community banking access
• ›Algorithmic bias in lending and insurance decisions

Impact

Bank trust scores plateaued at 58% (vs 72% pre-Royal Commission). 850+ bank branches closed since 2020 in Australia. 29% of loan applicants believe AI systems are biased against them.