Good morning, everyone! It's Friday, February 28, and I'm thrilled to share one of the biggest news stories of the day: Australia's revamped Banking Code of Practice is extending crucial safeguards to 10,000 additional small businesses while strengthening protections for vulnerable customers.

This is a big deal, and it shows how more and more of our customers are using offset facilities since the pandemic. The data tells us that Australian homeowners are finding new ways to manage their mortgage debt, and we're here to support them every step of the way.

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Today's reading time is 7 minutes. - Miko Santos

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ABA

Banking Code Overhaul: 10,000 More Small Businesses Gain Critical Financial Protections

Australia's revamped Banking Code of Practice extends crucial safeguards to 10,000 additional small businesses while strengthening protections for vulnerable customers.

The Australian Banking Association has unveiled its new Banking Code of Practice, setting forth higher standards of service and accountability within the financial sector.

This significant overhaul introduces enhanced protections for small businesses, guarantors, and vulnerable customers, reflecting the banking industry's commitment to improving customer outcomes in an increasingly complex financial landscape. With additional safeguards surpassing legal requirements, the Code represents a critical development for financial professionals seeking to understand how banking relationships and consumer protections are evolving in 2025.

Key Points

• The expanded small business definition extends Code protections to an additional 10,000 businesses across Australia, ensuring broader coverage.

• New guarantor obligations require banks to meet with potential guarantors before accepting guarantees, ensuring informed decision-making

• The Code introduces a broader vulnerable customer definition, acknowledging vulnerability can affect anyone at any time

• Enhanced support services encompass interpreter access, AUSLAN, National Relay Services, and specialized assistance tailored to customers experiencing financial difficulty.

The Bottom Line

For financial professionals, this Code overhaul carries significant implications for client advising and banking relationships. The expanded small business definition creates new compliance considerations when working with business clients, while the enhanced guarantor protections introduce additional procedural steps that may affect transaction timelines.

Recognizing customer vulnerability as a fluid state rather than a fixed category should prompt reconsideration of how financial advice is delivered across client portfolios. These changes, while primarily consumer-focused, will likely influence how financial institutions structure their product offerings, service models, and compliance frameworks in the coming years. This could potentially alter the competitive landscape, warranting close attention from financial advisors and wealth management professionals.

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ANZ

Student Financial Stress Eased: Saver Plus Program Participation Triples Among Tertiary Students

The Saver Plus program has significantly helped Australian tertiary students by more than tripling participation rates in the latter half of 2024 compared to the same period in 2023, amidst rising education costs and financial pressure. This increase not only reflects the financial challenges students face but also demonstrates an effective solution that combines financial education with tangible incentives.

Since its establishment in 2003 through a partnership between ANZ and the Brotherhood of St. Laurence, the Saver Plus program has become a vital financial wellness initiative, helping over 64,000 Australians manage education-related expenses and develop sustainable financial habits. The program's structure, with goal-setting, incentivized saving, and financial education workshops, offers a financial intervention model that provides immediate relief and fosters long-term behavioral change.

Key Points

• Tertiary students' participation in the Saver Plus matched savings program more than tripled in the latter half of 2024 compared to 2023, mainly for technology purchases that aid education.

• Since its inception, participants have collectively saved over $31.5 million, with ANZ providing an additional $26.5 million in matching funds.

• 84% of participants report continued saving behavior more than seven years after program completion, indicating lasting behavioral change.

• The program has now expanded nationally online, making it more accessible and generating intergenerational impact as 88% of participants promote saving habits within their families.

Bottom Line

The dramatic increase in Saver Plus uptake among tertiary students serves as both a warning signal about deepening financial stress in the education sector and an opportunity for financial institutions.

This trend of growing demand for structured financial wellness programs that combine education with incentives highlights an opportunity for financial professionals to open new market segments for similar products.

The ripple effect of financial behavior modeling, where 88% of participants promote saving within their families, suggests that these programs could have far-reaching effects beyond the initial participants. With the ongoing increase in education costs and financial stress, institutions that can package financial education with tangible incentives may find valuable opportunities in this underserved market segment, while also building brand loyalty among emerging consumers.

BIG PICTURE

• Rob McDonald Joins Suncorp New Zealand Board: Former Air New Zealand CFO Brings 30 Years of Financial Expertise. Suncorp New Zealand has appointed Rob McDonald, current Chairman of Contact Energy and former Air New Zealand CFO, to the boards of Vero Insurance and Vero Liability, strengthening its strategic leadership with his extensive financial expertise and governance experience across multiple industries and international markets.

• CommBank Breaks Australian Blood Donation Record: 489 Employees Donate in Single Day. Commonwealth Bank employees set a new national record with 489 blood donations in a single day, addressing Australia's critical blood shortage where demand has reached a 12-year high while only one in 30 eligible Australians currently donate despite one in three needing blood products in their lifetime.

  
  
  
  

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BUSINESS & MARKETS

➡️ Qatar Airways Acquires 25% Stake in Virgin Australia: Airfares Expected to Decrease as Competition Intensifies. The federal government's approval of Qatar Airways' acquisition of a 25% stake in Virgin Australia signals a significant shift in the Australian aviation landscape, potentially delivering more affordable airfares through increased route capacity, creating new jobs through a pilot and cabin crew secondment program, and enhancing competition while maintaining Australian representation on Virgin's board as a conditional safeguard.

➡️  Qantas Reports $1.39 Billion Profit as Carrier Resumes Dividend Payments After Five-Year Hiatus. Qantas has announced a substantial $1.39 billion underlying profit before tax with a 9% revenue increase, enabling Australia's flagship carrier to pay its first shareholder dividend in more than five years—a combined 26.4 cents per share including a special dividend component—while CEO Vanessa Hudson emphasized Jetstar's strategic importance in providing affordable flying options to thousands of Australians.

POLITICS & WORLD AFFAIRS

➡️ Interest Rate Cut Boosts ALP Electoral Standing: Roy Morgan Poll Shows 51% Two-Party Preferred Support. The latest Roy Morgan Research data reveals a significant political and economic sentiment shift following the Reserve Bank's interest rate reduction, with the ALP gaining a narrow 51-49 lead that would result in a hung parliament if an election were held now, while Consumer Confidence jumped 4.7 points to its highest level since May 2022, and Inflation Expectations dropped 0.7% to 4.2% – trends that could substantially impact electoral dynamics as mortgage holders showed the strongest positive response with a 10.7-point confidence surge.

➡️ Market Volatility Surges as Trump Confirms March 4 Deadline for Sweeping Tariffs on Top Trading Partners. President Trump has confirmed the implementation of 25% tariffs on Mexican and Canadian imports effective March 4, 2025, while simultaneously threatening an additional 10% duty on Chinese goods beyond the initial 10% already imposed, triggering market volatility with the Dow dropping 194 points (0.45%), the S&P 500 falling 1.59%, and the Nasdaq plunging 2.78% amid growing concerns about potential retaliatory measures from America's three largest trading partners and inflation implications for US consumers.

JOB BOARD

➡️  Entain's Brisbane Hub Seeks AML Specialists as Gaming Sector Strengthens Compliance. Entain Australia & New Zealand's recruitment drive for weekend AML coverage reflects the gaming industry's intensifying focus on regulatory compliance, particularly as digital wagering platforms face heightened scrutiny across the Asia-Pacific region

➡️  Major Insurance Provider Strengthens Risk Governance with New Executive Role. MLC Life Insurance's recruitment of a General Manager, Risk signals a strategic reinforcement of risk governance at a pivotal moment for Australia's insurance sector. This executive search comes as the industry grapples with evolving regulatory frameworks and increasing complexity in risk management across its nearly million-customer portfolio.

➡️ Westpac Strengthens Product Governance with Senior Role Amid Regulatory Evolution. Westpac's recruitment for a Senior Manager of Product Governance reflects the financial sector's intensifying focus on regulatory compliance and product oversight, particularly as Australia's banking industry navigates complex regulatory frameworks including Design & Distribution Obligations (DDO) and anti-hawking legislation.

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