Australia's biggest banks announced on Sunday a $1 billion ($754.6 million) investment in a new system to allow real-time transfers and payments as part of reforms aimed at appeasing public dissatisfaction with the financial system.
The changes come amid calls from the opposition Labour Party for a judicial inquiry into the broader financial industry, which has been plagued by scandals involving misleading financial advice, insurance fraud and alleged interest-rate rigging.
Australia's "Big Four" banks - Commonwealth Bank of Australia, Australia and New Zealand Banking Group, Westpac Banking Corp and National Australia Bank - have been forced to respond to public anger over the perception they are abusing their power.
The four together control 80 percent of lending in Australia and have enjoyed years of record profits thanks largely to their dominance of the mortgage market.
"We have heard the concerns of Australians and we are committed to taking action so that banking with all of us is a better experience," Andrew Thorburn, chairman of the Australian Banking Association (ABA) and CEO of National Australia Bank, said in a statement.
Real time payments will allow Australian customers to overcome current delays of up to five business days when making transfers. It will also ensure funds are available on a 24/7 basis.
Other initiatives announced by the ABA include financial literacy resources for small businesses and farmers, and making it easier for customers to change banks and accounts.
Tom Godfrey, spokesperson for consumer advocacy group CHOICE, said the steps did not go far enough.