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How customer-owned banks are disrupting financial abuse and supporting victims-survivors

By COBA
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Financial abuse is a form of domestic violence which affects one in six Australian women. It involves an abuser exerting control over the victim’s access to money and resources, which can manifest in various ways – from limiting access to funds and interfering with employment opportunities to racking up debt in the victim’s name. The lack of access to money trap victims in a cycle of dependence, making it difficult to escape the abusive relationship.

Customer-owned banks have a long history of championing financial inclusion and have a deep commitment to the people and communities they serve. That’s why mutual banks and credit unions are stepping up when it comes to financial abuse. To date, 12 customer-owned banks have updated their T&Cs to state that they don’t want their products to be weaponised in the context of domestic and family violence, and that there will be consequences for those who misuse their products.

Here, customer-owned Beyond Bank and Hume Bank share the innovative ways they are actively supporting victims-survivors and disrupting financial abuse.

Beyond Bank has implemented a range of measures, including training frontline employees to identify potential signs of abuse and providing a discreet callback service for victims.

Recognising that reaching out for help can be incredibly difficult and even dangerous for victims of domestic violence, Beyond Bank has created a simple online form where individuals can request a confidential callback.

To further enhance safety, the form includes a field where victims can provide a “cover story” for the call – like pretending it’s from a school, doctor’s office, or other innocuous source.

“This discreet callback services gives victims greater control over their situation, allowing them to seek help without alerting their abuser and potentially escalating the danger,” Beyond Bank National Operations Manager Sophie Scott-Young explained.

Beyond Bank recognises that branches are often a central point of contact within a community, in particular in regional Australia, which is why they have transformed these spaces into accessible and confidential support centres for those experiencing abuse

“We’ve transformed our branches into more than just banking centres; they are now confidential safe spaces where victims-survivors can connect with support providers or make private calls,” Sophie explained.

“We help victims develop a plausible reason for visiting the branch, like changing a PIN or updating their account information, providing a believable excuse if questioned by their abuser,” she added.  

Beyond Bank also recognises that its predominantly female workforce may be personally affected by domestic and financial abuse, either directly or through supporting loved ones.

“We have proactively strengthened our internal support systems and have introduced an employee care fund to assist team members experiencing domestic violence,” she said.

Hume Bank is a customer-owned bank deeply connected to 18 regional Local Government Areas (LGAs) on the NSW and Victorian border. Many of these communities report above national averages of domestic violence incidents.

“Financial abuse can have a devastating impact on the social fabric in a community. As a regional organisation, we are uniquely positioned to raise awareness about financial abuse, disrupt its patterns, and provide crucial support to those affected in the communities we serve,” Hume Bank CEO Stephen Capello said.

With the aim to disrupt a social issue prominent in their communities, Hume Bank’s approach to financial abuse is multi-dimensional and includes taking a stand with their policies and terms and conditions to prevent misuse of the bank’s products and services, empowering the team to take action, and building the systems to detect, identify and address potential abuse early on. A dedicated customer care team further strengthens Hume Bank’s efforts by providing personalised support, acknowledging the unique nature of each case.

“Our strong governance framework empowers our staff to confidently act and make decisions in challenging situations, which may include closing a perpetrator’s account as a consequence of financial abuse. Previously, a lack of clear guidelines had left them feeling powerless to address issues or support those in need. This shift has been remarkable, with staff now able to confidently handle situations which means we can send a clear message that financial abuse will not be tolerated,” Stephen explained.

Hume Bank has also extended the reach of their support to frontline organisations combating financial abuse in its communities through the Hume Bank Safer Communities Fund which it established earlier this year. The fund directly supports frontline organisations combating domestic abuse in the communities they serve.

If you need support, call 1800-RESPECT or visit zahrafoundation.org.au

The Zahra Foundation Australia is a not-for-profit that lights a path forward for women impacted by domestic and family violence, including financial abuse.  

To find out more about Beyond Bank’s actions against financial abuse, head here.

To find out more about Hume Bank’s actions against financial abuse, head here.

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