The Australian Bureau of Statistics ( ABS ) stats for the March 2024 quarter found all five Living Cost Indexes ( LCIs ) rising between 0.7 and 1.7 %, driven by health , insurance and financial services and food . The Domain Rent Report for April 2024 revealed house rents have risen nationally by 10.5 % over the past year , with unit rents rising by 12.7 %.

Mortgage stress is also at record highs , with nearly a third ( 31.4 %) of mortgage holders are also currently at risk of mortgage stress according to Roy Morgan research . This number has nearly doubled since the RBA rate rise cycle restarted after the pandemic . Banks are also seeing a rise in loan arrears , driven by home loans .

What customers want from banks

Publicis Sapient research reveals a strong call for banks to actively participate in alleviating customers ’ financial burdens as well as proactively detecting signs of financial stress early . An overwhelming majority of respondents ( 96 %) believe that banks need to proactively detect signs of financial stress early , with younger demographics even more likely to expect support .

Tales Sian Lopes , Head of Financial Services ANZ at Publicis Sapient

Most respondents ( 79 %) also expect banks to proactively address the cost-of-living crisis . Those who hold the strongest views include younger generations , particularly those under 45 , and people in a precarious financial situation . Of these , 85 % ‘ strongly believe ’ that banks need to play a role in addressing financial stress . This is also happening in other markets , for example the UK where the Financial Conduct Authority ( FCA ) has called for stronger protection of vulnerable customers . www . intelligentfin . tech

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