Macquarie penalty puts banking transparency and consumer trust under the spotlight

Macquarie penalty puts banking transparency and consumer trust under the spotlight

As Macquarie Bank faces penalties for misleading customers over savings account interest rates, questions are being raised about how banks communicate promotional offers and rate changes. An RMIT expert says consumers need clear, side-by-side comparisons so they can make informed decisions with confidence. 

Professor Angel Zhong, School of Economics, Finance and Marketing: 

"When interest rates are moving, consumers watch headline rates more closely and promotional offers get louder. That is exactly when clear, honest rate disclosure matters most, because small differences in wording can steer big decisions. 

"When a rate actually replaces the standard rate, unclear wording can leave consumers worse informed, which is what consumer protection rules aim to prevent. 

"This is about clarity, not complexity. Rate wording should be treated as a core compliance risk, with clear senior accountability. 

"Consumers should be able to see the ongoing rate and the promotional rate side by side, in a standard format, with the end date stated clearly. If the bonus is more prominent than the base rate, the layout itself can cause confusion. 

"Confidence is harder to rebuild than it is to lose. If consumers stop trusting that a headline rate means what it says, they stop shopping around, and that is bad for competition." 

Professor Angel Zhong is currently the Deputy Dean (Research & Innovation) in the School of Economics, Finance and Marketing at RMIT University. 

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General media enquiries: RMIT External Affairs and Media, 0439 704 077 or news@rmit.edu.au  

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