ASIC probes ANZ savings account interest calculations as big four bank brings in McKinsey to help lift game
The Australian Securities and Investments Commission is investigating ANZ’s calculation of savings account interest amid ongoing concerns about the big four bank’s systems.
The investigation, potentially covering tens of thousands of customer accounts, comes as the financial services watchdog continues close scrutiny of ANZ after a series of major probes and legal actions.
If the savings interest probe leads to successful litigation by ASIC, the bank could be ordered to pay millions of dollars in fines and compensation to affected customers.
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By continuing you agree to our Terms and Privacy Policy.The Federal Court hit ANZ with a $25 million fine in November 2022 and the bank had to pay more than $200 million compensation to mortgage offset and premium Breakfree customers short-changed over 18 years.
ASIC is also reportedly probing ANZ’s hardship processes, reflecting concerns about lenders failing to identify and assist struggling customers.
The retail-level probes come on top of an ASIC investigation into ANZ’s dealings while it was handling a $14 billion bond issue for the Federal Government in April 2024.
ASIC chair Joe Longo told a Parliamentary committee in November the bond probe had been expanded to include allegations ANZ had misreported data..
ANZ would comment on the latest investigations or media reports that it had engaged consultants from McKinsey & Company to help improve internal processes and risk management.
ANZ said it “often engages external providers to review and help us improve our practices”.
“Like all financial services organisations, we are in constant dialogue with regulators about a variety of matters and any questions on specifics should be directed to ASIC,” it said.
ASIC would not provide details of its interest calculation investigation or discuss its reported hardship provisions probe.
“ASIC is actively monitoring the conduct of Australia’s banks, however we cannot comment on the details of ongoing investigations,” the regulator said in a statement.
ASIC hit National Australia Bank with a Federal Court action in November last year over alleged breaches of the National Credit Code hardship rules.
Originally published on The Nightly
