Oliver Wyman has released a report discussing how Australia's financial hardship framework is evolving. The report notes that the framework has been influenced by the Financial Services Royal Commission, COVID-19, and cost-of-living challenges. This evolution emphasises increased lender responsibilities in supporting customers facing financial difficulties. 

Key changes include moving from debt collection to a more comprehensive approach for assessing and assisting customers in hardship. The UK's recent regulatory reforms, focusing on consumer outcomes and protections, are likely to influence future Australian regulations. 

Further, the Australian Securities and Investments Commission (ASIC) is intensifying its scrutiny of how lenders support customers in hardship, mirroring the UK's approach. This includes reviews and a potential shift towards making temporary guidelines permanent legal obligations. 

Read the report in full here.