Household financial stress is contributing to record numbers of disputes, Australian Financial Complaints Authority chief ombudsman David Locke says.

The number of complaints received by AFCA last year rose 14% to more than 111,000 and the trend has continued this year, with volumes spread across all major product areas as pressure is felt throughout the system, Mr Locke told a members’ forum today.

“In simple terms, many people are experiencing genuine financial stress,” he said.

“When households are under pressure, disputes surface more quickly. When claims take longer, communication breaks down or processes feel unclear, people lose confidence and escalate.”

Mr Locke says expectations are rising and some matters reaching the complaints authority are complex.

“We are operating in a global environment that remains volatile. The war in the Middle East is continuing to disrupt energy markets and supply chains, adding to cost‑of‑living pressures and inflationary risk.

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“For consumers, that means further financial stress. For members, it means operating in conditions that are more uncertain and more challenging.”

Mr Locke says complaints often begin as service or process issues involving delays, unclear communication or customers feeling they do not have clear answers, frequently arising in environments where customers and financial companies are under operational pressure.

“In superannuation, delays and transparency are recurring drivers. In insurance, claims handling is often central to escalation. In banking, service quality, administrative errors and the handling of hardship issues frequently become points of friction.”

Financial companies have a critical role in reducing external complaints through product design, service quality, clear communication and strong internal dispute resolution, and regulators and government must set the right frameworks and incentives, Mr Locke says. 

“AFCA has a role not only in resolving disputes but in sharing insights, improving accessibility and helping the system learn.” 

The ombudsman service has strengthened its executive team, recently appointing Deborah Jenkins as chief customer officer, Stevie-Ann Dovico as CTO and David Lacey as the first chief scams officer. It has also confirmed Brigid Parsonson as COO. 

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