ACCC outlines changes
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Australia’s financial services need stronger competition and consumer protections, the ACCC says.
Addressing the Gilbert + Tobin Financial Services Forum this week, ACCC Chair Gina Cass-Gottlieb highlighted rapid changes reshaping the financial sector and outlined the ACCC’s intensified focus on transparency, competition, and consumer support.
“Geopolitical instability, rising cost of living pressures, rapid technological advancements and the growing urgency around climate change are reshaping how industries and economies operate,” Ms Cass-Gottlieb said, which drives the need for expanded consumer protections and streamlined regulations.
With Australians facing rising costs and high interest rates, Ms Cass-Gottlieb emphasised the importance of accessible financial products and services.
ACCC inquiries into retail deposits and home loan pricing revealed that complex pricing structures and limited consumer engagement are constraining competition in financial markets.
In a copy of her speech posted online, the ACCC chair quoted Dr Andrew Mulino, saying; “Australia needs to lift its game when it comes to competition and economic dynamism”.
She said government-endorsed reforms seek to simplify consumer information and encourage loan switching.
These include notifications on interest rate changes, greater transparency on comparison websites, and easier processes for consumers looking to exit loans, aiming to foster a more competitive financial landscape.
Ms Cass-Gottlieb also underscored the transformative potential of the Consumer Data Right (CDR) for financial choice.
By granting consumers secure data access, CDR supports product comparisons and data-driven applications like mortgage assistance and budgeting tools.
Currently, CDR facilitates nearly 390 million data-sharing requests in sectors such as banking and energy.
She said planned expansions will bring CDR to non-bank lending, streamline consent processes, and reduce compliance burdens, supporting broader consumer participation and competition.
Ms Cass-Gottlieb also noted that the rise of digital finance has brought growing scam risks, prompting the ACCC’s partnership with banks, telecommunications, and regulators through the National Anti-Scam Centre.
Upcoming legislation and mandatory scam codes are expected to clarify responsibilities and penalise non-compliance.
Ms Cass-Gottlieb also discussed the decline of cash usage and the effect on cash-in-transit services in remote areas.
Interim ACCC authorisations permit banks, retailers, and Australia Post to work together to sustain cash availability where digital infrastructure is sparse.
With severe weather events impacting insurance premiums, especially in cyclone-prone areas, the ACCC is monitoring the cyclone reinsurance pool, which has so far reduced premiums. However, global reinsurance pressures and building costs continue to affect affordability.
Ms Cass-Gottlieb expressed optimism about the pool’s potential but warned that wider affordability issues need continued focus, particularly in high-risk areas impacted by climate change.
Ms Cass-Gottlieb closed by noting that regulatory reforms will enhance ACCC’s capacity to assess mergers and acquisitions with greater transparency, allowing community feedback and improved competition safeguards.