This after new report establishes a concerning trend over three reporting periods
Customer-owned banks have been urged to improve reporting after a new report revealed too few breaches of the Customer Owned Banking Code of Practice.
Customer Owned Banking Code Compliance Committee’s (COBCCC) 2021-22 Annual Data Report found that too many subscribers reported either no breaches or a low number of breaches of the code, establishing a concerning trend of three consecutive reporting periods.
According to COBCCC, zero breaches were highly unlikely and called into question the adequacy and effectiveness of the monitoring and reporting systems and capabilities of those institutions that continually report no breaches.
“Reporting no breaches or complaints is not normal and is certainly not an easy way to present a clean record and good reputation,” said Jocelyn Furlan (pictured above), COBCCC chair. “We consider this as an indication that an institution’s monitoring and reporting systems and capabilities are not up to scratch. Seeing so many code subscribers underreport again this year – especially the ones that reported zero breaches or complaints – is disappointing considering our efforts to encourage better reporting.”
In the report, COBCCC reiterated the importance of proper reporting of all breaches in order to improve and achieve better outcomes for customers.
“You cannot improve services if you are not properly monitoring, identifying, and reporting breaches and complaints; they are simply an integral part of improving services and outcomes,” Furlan said.
“If a customer-owned banking institution has the desire to deliver better outcomes for customers, it will take its breach and complaints reporting seriously. It will report fully and then make the effort to learn from them.
“Doing so will also help bring about a culture of compliance in the institution – something we, as a committee, have encouraged for some time now.”
Customer-owned banks were also encouraged to consider breaches carefully and categorise them according to specific code provisions, after the COBCCC report found that many subscribers were failing to record breaches against appropriate code provisions.
“By thoroughly understanding breaches and recording them accurately, customer-owned banking institutions can improve risk and compliance frameworks and create a positive and proactive compliance culture,” Furlan said. “It also demonstrates a commitment to the code and a desire to take reporting obligations seriously.”
The report also found that there had been a significant rise in the number of breaches reported relating to responsible lending – an area COBCCC said it will closely monitor in the future.
The COBCCC urged all institutions to take note of the findings of the latest Annual Data Report from the COBCCC and implement improvements.
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