Financial complaints still a barrier for First Nations consumers
Complaints to the Australian Financial Complaints Authority (AFCA) continue to highlight the barriers Aboriginal and Torres Strait Islander peoples face in accessing financial services and products, particularly in regional and remote communities.
The ombudsman has called on the industry to make 2026 count and take actionable change to improve service quality and the cultural competence of their organisations.
AFCA received 2,461 complaints from Aboriginal and Torres Strait Islander peoples in the 2024–25 financial year.
Key Services
AFCA handles disputes involving:
- Banking: Errors in transactions, credit cards, and loans.
- Insurance: Denial of claims for car, home, travel, or life insurance.
- Superannuation: Trustee decisions regarding benefit distributions.
- Investments and Advice: Inappropriate financial advice or investment issues.
- Financial Hardship: Difficulty repaying loans or credit cards due to changed circumstances.
Through complaints handling and community engagement, the most common issues raised include unauthorised transactions, inadequate or delayed responses to requests for financial difficulty assistance, lengthy delays in firm responses to claims and complaints, and mis‑selling of funeral and other insurance products.
AFCA also hears concerns relating to digital exclusion, which can limit people’s ability to engage with firms via technology.
This is compounded by a lack of cultural understanding within firms and higher costs for First Nations people seeking to access basic banking, superannuation and insurance services, particularly in regional and remote areas.
David Locke, Chief Ombudsman and Chief Executive Officer of the Australian Financial Complaints Authority
“First Nations people continue to face disproportionate challenges and barriers when interacting with financial services and our data likely reflects only a fraction of the problem,” AFCA Deputy Chief Ombudsman Dr June Smith said.
“Year after year the same patterns persist, and many people never reach external dispute resolution because of the frustration they experience dealing with firms.
“First Nations people deserve to be able to access every day financial services other Australians take for granted.
“In 2026, we encourage the sector to come together and take advantage of the many opportunities for change, such as the independent reviews of codes of practice which could make a real difference to how First Nations people can engage and access financial services. Our goal should be economic and financial empowerment for First Nations people.”
Process and Outcomes
- Free for Consumers: There is no cost for individuals or small businesses to lodge a complaint.
- Binding Decisions: If an informal settlement cannot be reached through negotiation or conciliation, AFCA can make a formal determination. This decision is binding on the financial firm if the consumer accepts it.
- Governance: AFCA is overseen by the Australian Securities and Investments Commission (ASIC) and operates under a set of Treasury-approved Rules.
Many regional and remote communities face limited internet access, unreliable mobile coverage, and more recently, bank branch closures.
These barriers often make it harder for First Nations people to access services online and engage with representatives about the challenges and difficulties they’re having with products.
Automated services provided by financial firms, including during internal dispute resolution, can overlook signs of digital exclusion, language and cultural barriers, vulnerability, hardship or financial abuse.
Firms have an obligation to make sure there are human-led checks, culturally competent staff when engaging with First Nations people and balances in place to support their customers.
“Not having digital access can have many impacts – from making insurance claims, accessing and engaging with superannuation accounts and receiving timely updates from financial firms,” Dr Smith said.
“A priority for AFCA is equity of access for everyone, and I encourage all financial firms to think about the equity of access they offer to their own customers.”
“Not having digital access can have many impacts”
The current independent reviews of industry codes of practices across the sector are a terrific opportunity to set consistent standards for First Nations engagement and access to services, customer service and support for vulnerable, regional and remote customers.
It is also timely for industry to review the additional barriers to full financial services engagement by First Nations people.
“Now is the time for industry to clearly define its commitment to improving engagement with First Nations peoples,” Dr Smith added.
“The new Codes should strengthen self‑identification processes, incorporate cultural practice and norms into account and personal identification requirement, require meaningful cultural awareness training, and ensure genuine service support for First Nations people in regional and remote areas.
“We need stronger codes of practice to improve how financial services engage with First people to ensure they can access their services and have a clear path to culturally appropriate dispute resolution when things go wrong.”
As part of its commitment to reconciliation and financial inclusion, AFCA has also changed the way it manages complaints from First Nations peoples, making its process culturally informed, respectful and accessible.
“Through our Equity of Access program and Reconciliation Plans, AFCA is embarking on further improvements to how we work, to ensure every First Nations person has the same opportunity for a fair process and a fair outcome,” Dr Smith said.
“We recognise that people come to us with different needs and experiences, and for some the process can feel daunting.”
“This program marks the beginning of a major shift in how we deliver our service, so people feel seen, heard, supported and able to participate fully in their complaint.”
What is the AFCA
AFCA most commonly refers to the Australian Financial Complaints Authority, an independent, non-government ombudsman service that provides free dispute resolution for consumers and small businesses.
