Banks' Compassionate Response To Hardship Helps To Make Up For Past Sins

Payment deferrals, interest rate cuts and the suspension of penalties are among the measures introduced to ease customer stress

- Michelle Baltazar

Big banks are often called our fair-weather friends. They’re around during the good times but nowhere to be seen when you need them the most.

But in the past two years, a new pattern has emerged. They are providing more products and services that help the vulnerable and the needy. We saw this early this year when they helped those affected by the bushfires.

Then came a once-in-a-century test that stretched the banking system to the limit. Millions of Australians were caught out in an unprecedented wave of sudden business closures, job losses and stand-downs because of Covid-19.

In what is called compassionate banking, the big four – ANZ, CBA, NAB and Westpac – threw away their usual rulebook on how to manage savings accounts, personal loans, home loans and business loans. The focus shifted away from profits and towards the wellbeing of their customers, including how to relieve them of the financial burden during a pandemic.

If you are banking with one of these major financial institutions, here are 10 ways they are helping customers affected by the bushfires and the coronavirus crisis.

1 PAYMENT RELIEF AND DEFERRALS