This has been a year of significant achievement and change at AFCA with the delivery of three major corporate projects, and the handling of record complaint numbers – all whilst responding to a dynamic regulatory and legislative landscape.

Our IT transformation

On 17 June 2024, our IT transformation, Project Fusion, was delivered. We launched three new, integrated IT systems – a case management system (CMS), an enhanced member portal and a consumer portal.

These new systems replaced the legacy systems we had been using since AFCA’s establishment and deliver a significantly improved experience for member firms, consumers and our people.

The introduction of targeted automation is reducing the manual work required of firms, complainants and our people and giving them a greater degree of autonomy and visibility. Firms and complainants can now upload and access documents, view where they are in the process and access timeframes and due dates.

It’s been a long journey to arrive at this point, as we worked with consumers and members to understand their needs and ensure the solution was fit-for-purpose. It was a challenge to design a system flexible enough to meet varying needs, from an individual user up to a large corporation.

Like any large-scale change it has not been without challenges. But consumers and members are already telling us that they are starting to see the tremendous benefits of these new and innovative ways of working with us.

This new technology allows for continuous improvement – not just through ongoing system enhancements but through new ways of working to improve the customer experience.

Independent Review

Our three-year program to implement the recommendations of the Treasury-led Independent Review of AFCA is now all but complete. By the end of 2023-24 we had addressed 11 of the 13 recommendations in the final report, with the remaining two on schedule for completion by the end of calendar year 2024.

A notable achievement in the past year was the publication of our updated Rules and Operational Guidelines, which apply to all complaints lodged from 1 July 2024.

Approved by the Australian Securities and Investments Commission (ASIC), these revised rules and guidelines are designed to enhance transparency and efficiency in our operations. The improvements include better management of unreasonable conduct, clearer guidance on excluded complaints, and enhanced transparency in our decision-making processes.

The changes reflect our commitment not only to implementing the Review’s recommendations but also to continuous improvement. It was gratifying to receive the results of an Independent Decision Review we sought from Federal Court Judge, Julie Dodds-Streeton KC, and barrister, Ahmed Terzic, which assessed a randomly selected sample of complaint case files.

The reviewers were ‘impressed with the overall quality and standard of decision writing, AFCA’s ability to deliver fair process and outcomes’ and our overall service delivery to the parties, including people living in vulnerable circumstances.

Compensation Scheme of Last Resort

We were pleased to see the CSLR start work in April 2024. At the Federal Government’s request, AFCA assisted with practical steps to get this up and running, though it now stands on its own feet as a separate, independent organisation. The CSLR is an important consumer protection and supports trust and confidence in the financial services sector.

First Nations Reconciliation

We are deeply committed to advancing Reconciliation and addressing the needs of First Nations peoples. This resolve is reflected in our Reflect Reconciliation Action Plan (RAP) and in our ongoing work to provide culturally respectful and accessible services. Our goal is to ensure that First Nations voices are heard and that First Nations peoples concerns are addressed effectively within our complaint resolution processes.

We expanded our community outreach in 2023-24, with a highlight being the AFCA Board holding on of its regular meetings in Cairns. This visit was a valuable opportunity for Board members to hear first-hand the challenges faced by Aboriginal and Torres Strait Islander peoples as well as non-Indigenous communities in far north Queensland. We learnt about the consumer detriment caused by issues such as insurance claim delays, mis-selling, aggressive debt collection, poor product design, scams and unethical practices.

The visit brought together over 20 consumer advocates from organisations such as Tenants Queensland, Good Shepherd, The Salvation Army, Cairns Community Legal Centre, First Nations Foundation, Shelter Housing Action Cairns, and the Indigenous Consumer Assistance Network (ICAN). I thank them all for their time, and their generosity in sharing their experience and stories. Their insights have contributed to our approach to providing culturally safe and effective services.

As we continue AFCA’s Reconciliation journey, our goal is to contribute to a fairer financial services system for all.

Record complaints volume

In his Chief Executive Officer and Chief Ombudsman message, David Locke sets out the extraordinary volume of complaints that AFCA has handled this year and some of the main drivers. It has been important to engage with the major financial institutions throughout the year, to explore how AFCA can work in partnership with them to mitigate the issues that give rise to these complaints. I am confident that much more can be done in the next three years towards this aim.

Looking ahead and thank you

As we look to the future, our focus remains firmly on our mission to deliver fair, efficient and effective dispute resolution.

I want to thank the staff at AFCA, for all their hard work, their commitment to customer service and the positive workplace culture they have maintained. It was wonderful to see the AFCA culture recognised in multiple workplace awards this year, including in the 2024 Australian Financial Review BOSS Best Places to Work.

I extend my gratitude to our CEO David Locke for his outstanding leadership. David was also a deserving winner of awards this year, including CEO Diversity Equity & Inclusion Champion at the Australian HR Institute Awards.

Lastly, thank you to the members of the AFCA Board for their invaluable guidance and support. It was a year in which we farewelled some of the founding directors who played a critical role in the establishment of AFCA.

I want to thank Jennifer Darbyshire, Andrew Fairley, Carmel Franklin and Claire Mackay for their outstanding contributions. In August, we also farewelled Gerard Brody who joined our Board in May 2023. We wish Gerard all the best in his new role as Chairperson of the Essential Services Commission.

In turn, we welcomed new directors, Raylene Bellottie, Swati Dave, Yien Hong and Dr Heron Loban, who bring a diverse range of experiences and skills to the table.

This year has been the final year of AFCA’s current three-year Strategic Plan. During this time, it has firmly established itself as a world-class Ombudsman service with a record of delivery. AFCA now has the systems, processes and people to be able to embark on the next stage of its development, where the focus will be firmly on how it can continue to improve its services to all. 

Professor John Pollaers OAM

AFCA Board Chair

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