Banks across Australia are being called out for leaving customers waiting too long for help. The country’s financial watchdog says complaints are piling up, showing a worrying gap between what banks promise and what they actually deliver.
AFCA’s Annual Review Reveals Rising Customer Frustration
The Australian Financial Complaints Authority (AFCA) dropped its latest annual review last week, and the numbers speak volumes. More than 100,000 complaints poured in during the 2024–25 financial year — the second consecutive year to cross that six-figure mark.
AFCA’s chief ombudsman, David Locke, didn’t mince words. He said financial firms need to “stay committed to fairness and timely resolution.” Behind each complaint, he reminded, is a real person “feeling stretched, stressed, and simply looking for help.”
The review paints a clear picture of Australians under financial strain. Even though complaints about financial hardship dropped 17%, “failure to respond to a request for assistance” stayed firmly among the top five issues.
That means people are still reaching out for help — and not getting it fast enough.
Banking and Finance Lead Complaints List
Banking and finance continue to top the complaint charts, making up 54% of all cases lodged with AFCA. That’s more than half of the total workload, a trend that’s showing no sign of easing.
The watchdog says too many customers are being left hanging after submitting requests. Some wait weeks for even an acknowledgment. Others say their cases vanish into silence.
One AFCA case manager described the trend bluntly: “You can tell people are tired. They’ve emailed, called, waited — and nothing. By the time they reach us, they’re out of patience.”
Here’s a breakdown of the main complaint types recorded in 2024–25:
| Complaint Category | Percentage of Total | Change from 2023–24 |
|---|---|---|
| Banking & Finance | 54% | +2% |
| Insurance | 18% | +1% |
| Superannuation | 9% | 0% |
| Investments/Advice | 12% | +4% |
| Others | 7% | -1% |
The data shows how financial advice disputes are climbing sharply, particularly after several large-scale collapses in the sector. Those alone pushed up complaints in that category by 18%.
Cost-of-Living Squeeze Still Biting Families
Australia’s cost-of-living crunch continues to weigh heavily on households. Rent, groceries, energy bills — everything’s more expensive, and more families are falling behind.
AFCA’s Locke said this environment makes fairness and compassion from financial institutions more important than ever. “We know more and more families are experiencing hardship,” he said. “Financial firms must genuinely consider these requests, not brush them aside.”
Actually, that’s where the tension really lies. Many banks insist they’re doing their best, but AFCA’s data tells another story — one of patchy internal systems and understaffed resolution teams.
And it’s not just customers who are fed up. Some smaller banks admit privately that compliance pressures and cost-cutting have slowed their response times too.
Delays Turning Into Trust Issues
For a lot of Australians, dealing with their bank feels like shouting into a void. You file a complaint, and then… nothing. Weeks of silence, sometimes months.
AFCA says those gaps in communication are doing lasting damage to public trust. It’s not just about bad service anymore — it’s about how people feel treated.
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Long wait times for financial hardship help
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Poor communication from customer service teams
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Lack of follow-up on previous correspondence
Each of those points appeared repeatedly in the complaints AFCA reviewed. It’s the sort of thing that chips away at people’s confidence, especially during tough times.
“Banks talk about customer focus,” said one Sydney mortgage holder, “but it’s all talk if they can’t even reply to an email when you’re trying to save your house.”
Financial Advice Firms Under Scrutiny
Another sore spot in AFCA’s review is the financial advice sector. Complaints against advisers jumped 18% year-on-year — a spike linked to conflicts of interest, poor-quality advice, and the misuse of self-managed super funds (SMSFs).
Mr. Locke said this shows “systemic issues” in advice models and underscored why the Compensation Scheme of Last Resort is essential. The scheme ensures consumers have a safety net if bad financial advice leads to major losses.
The watchdog has long argued that without this kind of backup, trust in the financial advice industry will keep eroding. After several high-profile firm collapses over recent years, customers have been left with nowhere to turn.
One paragraph stood out in the review: “Consumers deserve redress when financial advice fails to be in their best interest.” That line hit home for many.
What Banks Say in Response
Banks, for their part, haven’t ignored the criticism. The Australian Banking Association said members are investing more in internal resolution systems and digital tracking tools to improve complaint handling.
A spokesperson said banks “acknowledge the findings” but stressed that many issues arise from “complex, ongoing financial hardship cases.”
Still, AFCA’s data suggests that investment isn’t translating fast enough into better experiences for customers. And that’s the real frustration.
Some insiders point to staffing shortages, outdated IT systems, and rising case volumes since the pandemic. Others quietly admit that cost-cutting in back-office teams has left customer support stretched too thin.
Looking Ahead — Will Things Improve?
The ombudsman has made it clear: if financial firms don’t clean up their internal processes soon, penalties or tighter regulations could follow.
But regulation can only do so much. Ultimately, the fix lies in culture — whether banks see complaints as a nuisance or as feedback that could improve trust and loyalty.
AFCA’s message couldn’t be plainer: listen to people, respond faster, and treat them fairly.
And honestly, that’s not a big ask. Australians aren’t demanding miracles; they just want to know someone’s listening on the other end.
