Australia’s cost-of-living crisis has fundamentally shifted what customers expect from their banks. No longer is it enough for banks to simply provide secure transactions and basic financial products. Today, Australians overwhelmingly expect their banks to play an active, supportive role in their financial wellbeing—especially when times get tough. According to recent research, 92% of Australians want their banks to provide support to customers in financial stress before it’s too late, and 79% seek proactive support to cope with rising living costs. This expectation is even more pronounced among younger generations and those in precarious financial situations.
Banks are uniquely positioned to help, thanks to the vast amounts of data they hold and the rapid advances in artificial intelligence (AI) and analytics. By harnessing these technologies, banks can move from a reactive model—waiting for customers to reach out in crisis—to a proactive one, where early warning signs of financial stress are identified and addressed before they escalate.
AI and data analytics enable banks to monitor a range of indicators that may signal financial stress, such as:
By analyzing these signals in real time, banks can segment customers by risk and tailor their outreach accordingly. This not only helps prevent financial hardship but also builds trust and loyalty by showing customers that their bank genuinely cares about their wellbeing.
Customers themselves have identified the types of support they value most during periods of financial stress. The most effective intervention techniques include:
AI can help banks deliver these interventions at scale, ensuring that the right support reaches the right customer at the right time. For example, a customer who has just missed a payment might receive an automated but empathetic message offering options for relief, while those showing early signs of stress could be nudged towards educational resources or budgeting tools.
Proactive banking is not just about crisis management—it’s about supporting customers throughout their financial journey. This means:
Banks that excel in lifecycle support use AI to create a unified view of each customer, enabling them to deliver relevant, timely, and empathetic experiences across every touchpoint. This approach not only helps customers avoid financial stress but also deepens relationships and drives long-term loyalty.
The benefits of proactive, AI-enabled customer care extend beyond social impact. In a market where trust in banks is fragile and competition is fierce, delivering meaningful, personalized support is a powerful differentiator. Customers who feel supported are more likely to stay loyal, recommend their bank to others, and engage with additional products and services.
Moreover, as regulatory scrutiny intensifies and expectations for social responsibility rise—especially among younger Australians—banks that lead in proactive support will be better positioned to retain customers and grow market share.
While AI and data are powerful enablers, their use must be transparent and ethical. Nearly all Australians express concerns about AI in banking, particularly around data privacy and the loss of human interaction. To build trust, banks must:
Proactive banking for financial wellbeing is no longer optional—it’s a new baseline expectation. By leveraging AI and data analytics, banks can identify early warning signs of financial stress, deliver tailored interventions, and provide continuous, lifecycle support. Those that rise to this challenge will not only help customers navigate the cost-of-living crisis but also secure a lasting competitive advantage in a rapidly evolving market.
The future of banking in Australia belongs to those who blend innovation with empathy, technology with trust, and digital convenience with genuine human care. Now is the time for banks to act—proactively, responsibly, and with the customer’s wellbeing at the heart of every decision.