Commonwealth Bank ramps up financial abuse support, as more government COVID-19 assistance is urged

Commonwealth Bank is upping its commitment to help victims of financial abuse, as problems spike during COVID-19.

From right to left: CBA CEO Matt Comyn, Domestic Violence NSW’s Renata Field and CBA’s Catherine Fitzpatrick, general manager of community and customer vulnerability. Picture: Britta Campion

Commonwealth Bank is stepping up its commitment to help victims of financial abuse over the longer term, as some assistance groups question the level of government support during the COVID-19 crisis.

CBA chief executive Matt Comyn admitted the bank had been surprised by demand for initial programs it set up to help tackle financial abuse, including a package of direct financial assistance to pay for groceries and a mobile phone.

CBA has drawn on the experience of those impacted and worked with community groups and experts in the area since 2015, committing $30m over the period.

That pledge is expected to increase in value over the next five years.

“I remember working on that (direct financial assistance package) and thinking we may have, sort of 500 customers come to us over the coming year … we had about 6000 over the first three months, which gave us a window and an insight into, sadly, the scale of the issue,” Mr Comyn said at a CBA event on the topic last week.

“We want to make a real impact over the years ahead. We see that there’s an opportunity here to really lead the industry in providing real care for customers in such a difficult and vulnerable set of circumstances.”

CBA’s latest measures in this area see it setting up an independence hub in partnership with Good Shepherd to provide financial coaching and support to victims, regardless of whom they bank with. The one-on-one support can include interest-free loans.

An internal community wellbeing team is also being established within the bank, which expects to support 125,000 CBA customers over five years.

As COVID-19 started to grip Australia early this year it spurred increased fears of rampant domestic and financial abuse, particularly during periods of lockdown. The federal government allocated an initial $150m for domestic, family and sexual violence support during the pandemic, pointing to Google data showing more searches for help during the pandemic than at any time in the past five years.

Domestic Violence NSW co-ordinator Renata Field said while the funding was welcome it was a “splash in the pan” given the problem’s size, and hopefully more support would follow.

Natasha Stott Despoja, chair of violence prevention group Our Watch, said the spike in violence and financial abuse cases during the pandemic was “very concerning”. She noted a large proportion of new government funding was directed at educational campaigns and early-stage resourcing.

“I know change is possible … banks should be in a position to help,” Ms Stott Despoja said.

CBA labels financial abuse a “hidden epidemic” which affects one in four Australian adults, personally or through someone they know, according to a bank-commissioned survey of 10,000 people in June. The survey also showed 63 per cent of respondents wanted their bank to help address the issue.

CBA also cited Australian Bureau of Statistics data showing one in four women and one in 13 men had experienced violence by a partner since the age of 15.

Good Shepherd chief Stella Avramopoulos said financial stress was the dominant issue for women accessing its services after safety and violence, and that the new hub would aid longer-term assistance.

“It’s not a quick fix because it’s based on long-term support,” she said.

“We see how financial abuse is forcing women to choose between poverty and violence. No one should ever have to face that choice.

“Our front-line services see this everyday: women who end up with huge debts and bad credit records, caused by abusive ­partners.”

University of NSW professor Jan Breckenridge — who is working with CBA on research in the area — said while financial abuse was hard to define there were situations that raised “red flags”.

“Under COVID-19 there are new ways they financially abuse,” she added. Pressuring a victim to seek early release of superannuation was one of those.

Catherine Fitzpatrick, CBA’s community and customer vulnerability general manager, said since COVID-19 took hold the bank had supported more than 2000 customers dealing with financial abuse.

The new initiatives come after CBA this year introduced online banking rules to stop the service being used to send abusive or threatening transaction descriptions. Over a three-month period in 2019 CBA identified about 8000 customers that were sent such messages, sometimes several times at low transaction values. Mr Comyn said: “We were horrified to see that.”

CBA worked with the police and community partners on that initiative.

The bank’s event also heard from victims of financial abuse, one who escaped from the perpetrator with just $17.50 in the bank.

In May, regulator Austrac relaxed rules for banks when they identify victims escaping family and domestic violence. The change gives banks leeway on the strict identification checks typically required, allowing initial verification to be provided through a refuge or family doctor. But customers facing that predicament need to provide supporting material within 90 days.