But more improvements must follow, the committee says
The Banking Code Compliance Committee (BCCC) has reported a reduction in breaches, as it urged banks to continue to improve systems and pursue better outcomes for customers.
BCCC’s latest report on compliance with the Banking Code of Practice, covering the period of January 2022 to June 2022, said breaches to the code fell 38%, with 14 of the 18 banks subscribed to the code reporting decreases in breaches, including four major banks.
“Fewer breaches is always a positive result,” said Ian Govey, BCCC chair. “We are pleased that the efforts to improve are bearing fruit.”
Govey said more accurate reporting and several other factors were involved in the decline of breaches.
“We saw better reporting in this period, with breaches recorded more accurately,” he said. “This reflects better reporting practices in banks and better awareness of code obligations. Banks also reported that they are looking more closely at incidents to determine root causes and resolve underlying issues.
“Regulatory changes also had an effect – we saw improved systems and processes in many banks to manage changes to the ways they had to record and report complaints.”
Despite the decrease in breaches, the financial impact of the breaches increased in the six-month period reported to BCCC, the report found.
The overall financial impact of breaches jumped to $72.5 million in the first half of 2022, from $69.4 million in the preceding period. Significantly fewer customers were affected in this period, however.
“We recognise a 4.5% rise in the financial impact, but are encouraged by the fewer customers affected,” Govey said.
Despite the positive developments indicated in the report, BCCC continued to stress the need for banks to remain vigilant, continue improving, and pursue better outcomes for customers.
“This result is for one reporting period, and we want to see a trend with these positive developments,” Govey said. “Meaningful improvements are ones that produce sustained reductions in breaches over time and, ultimately, better outcomes for customers.”
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