Banks will now be required to inform customers when the interest rate on their savings accounts changes.
There will be more communication from banks to help customers discover better savings options.
Treasurer Jim Chalmers believes these changes will give customers more choices, lower prices, and better services.
These reforms stem from two ACCC inquiries and will aid small banks in competing with larger institutions.
Additionally, rules will enhance disclosure for basic deposit accounts and bring increased transparency to financial comparison websites.
In a bid to boost competition and ensure better customer outcomes, the government has unveiled a series of reforms targeting the banking sector. Changes include improved communication from banks regarding interest rate adjustments on savings accounts, facilitating easier switching of providers for home loans, and enhancing disclosure requirements for deposit accounts.
Treasurer Jim Chalmers believes these measures will empower customers with more choices, lower prices, and better services. The reforms also aim to level the playing field for small and medium-sized banks, encouraging competition against the dominant big four institutions.
The government will also delve into supporting smaller banks in sourcing funding and exploring ways to help new banks enter the market. Financial comparison websites will face stricter regulations, requiring them to disclose their relationships with product providers and provide clearer rankings on product comparisons. These changes are expected to bring greater transparency and accessibility to the banking industry.\
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