Why More Australians Are Complaining About Financial Services
Record complaints highlight growing financial pressures
Australians lodged a record number of complaints with the Australian Financial Complaints Authority (AFCA) during the 2025–26 financial year, reflecting the financial challenges many households continue to face amid ongoing cost-of-living pressures and economic uncertainty. It also marks the third consecutive year that complaints have exceeded 100,000, highlighting persistent issues across banking, insurance, superannuation, and investment services.
The latest figures provide valuable insight into where consumers are experiencing the greatest difficulties and where financial institutions may need to improve customer support and service standards.
Banking and insurance remain the biggest complaint areas
Banking and finance continued to generate the largest number of complaints, followed by general insurance. Personal transaction accounts, motor vehicle insurance, and credit cards were the most frequently complained-about financial products during the year.
The most common issues reported by consumers included delays in claim handling, poor service quality, and rejected insurance claims. Complaints related to financial hardship and credit reporting also recorded notable increases, suggesting many Australians continue to face financial stress.
Investment and superannuation disputes surge
One of the strongest increases came from investment and financial advice complaints, driven largely by major investment collapses that affected thousands of investors. Allegations that advisers failed to act in their clients' best interests also rose significantly, reflecting growing concerns around investor protection and financial advice standards.
Superannuation complaints also climbed sharply during the year, with delays in processing claims, service issues, and rejected insurance claims emerging as the most common concerns.
Scam complaints continue to increase
AFCA also recorded another rise in scam-related complaints as fraudsters continued using increasingly sophisticated methods to target consumers. While dispute resolution remains important, the data highlights the growing need for stronger fraud prevention measures and improved customer awareness to reduce financial losses before disputes occur.
The findings reinforce the importance of effective communication, timely complaint resolution, and stronger customer support across the financial services industry.
What investors and consumers should watch next
Investors and consumers will continue monitoring regulatory developments, improvements in financial service standards, and efforts by banks, insurers, and investment firms to strengthen customer protection. Ongoing regulatory oversight and better hardship support are also expected to remain key priorities as financial institutions respond to the growing number of complaints.
For now, AFCA's latest report highlights the increasing financial pressures facing Australian consumers. While most financial firms continue to meet their obligations, the record number of complaints suggests there is still significant room to improve customer service, dispute resolution, and consumer protection across the financial services sector.
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