How to meet the new standard for hardship support in Australia

In financial services, every interaction is more than a transaction, it’s a trust-building moment. This is true in Australia, across Asia-Pacific and the rest of the world. Banks have become excellent at using AI, data, and marketing to attract customers and streamline loan origination. Applications are faster, approvals are smoother, and onboarding feels almost effortless. 

But too often, this seamless experience vanishes the moment a customer faces hardship. When someone falls behind on a payment or reaches out for support, processes are still slow, inconsistent, and compliance heavy. This is where trust is tested and many institutions stumble. 

AI has the potential to change that story. Used well, it can: 

• Identify vulnerability early by analysing behavioural and transactional data to spot signs of stress before arrears build. 

• Orchestrate support seamlessly by routing each case through a decision engine that balances regulatory obligations, customer context, and operational priorities. 

• Personalise communications so customers receive the right message, at the right time, in the right channel, whether that’s SMS reminders, translated hardship options, or empathetic outreach at a human touchpoint. 

• Keep customers safe by embedding compliance rules into the collections system, ensuring obligations under ASIC, APRA, CCCFA, and other standards are consistently met without slowing down the process. 

A robust collections system and decision engine are the backbone of this model. They don’t just manage arrears, they orchestrate the entire experience. From recognising early stress signals, to offering tailored repayment options, to escalating when necessary, the system ensures AI-driven insights, human empathy, and regulatory compliance all work in concert. 

This isn’t about replacing people with technology. It’s about freeing human teams to focus on the complex, sensitive cases where listening and reassurance matter most, while AI handles the speed, accuracy, and orchestration behind the scenes. 

The future of financial services won’t be defined by how slick the onboarding process feels. It will be defined by how well banks show up when customers are at their most vulnerable. AI, data, and strong collections systems aren’t just tools for efficiency, they’re tools for dignity, trust, and resilience.