Improving Access to Bank Accounts for Vulnerable People

Presbyterian Support Northern (PSN) and our Shine Education & Training team (family violence specialists) recently made submissions to the Council of Financial Regulators on an issues paper focused on improving access to basic transaction bank accounts for vulnerable people.

Access to a bank account is essential for full participation in society. However, many of our clients, particularly those engaged in our Total Money Management services or women experiencing family violence, face significant barriers when trying to open or maintain a bank account.

In our submissions, we made several key recommendations aimed at improving financial inclusion for people with complex needs, including:

• Greater flexibility from banks for people who are homeless, do not have a fixed address, lack photo ID, have a criminal record, are living with mental illness or cognitive impairment, or are victim-survivors of family violence.
• Introducing banking advocates who can support vulnerable clients, particularly people with disabilities and those experiencing family violence, through the process of opening and managing a bank account.
• Allowing more time to provide standard ID or proof of address, recognising that many people without stable housing or documentation need additional support.
• Regulatory changes to ensure that basic transaction accounts are made widely accessible, and support for digital wallet providers working towards becoming registered digital banks.
• Training frontline bank staff to recognise and appropriately support customers with complex needs, including family violence victim-survivors.
• Stronger oversight of joint accounts or accounts opened by a partner, to prevent financial abuse and fraudulent debt accumulation.

We also highlighted the need for safe and supportive environments within banks when a customer discloses family violence, such as offering private spaces for discussion, ensuring secure communication, and providing referrals to appropriate support services.

Overall, our message is clear: access to banking services is a basic need, and banks must do more to reduce barriers and support those most at risk. We encourage financial institutions and regulators to take meaningful action to ensure fairer access and better support for people who face challenges in setting up a bank account.