Mastering communication during public scrutiny: Lessons from the Australian banking sector

Navigating public scrutiny is never easy, especially when you're leading a team under the scope. The Australian banking sector knows this well. From royal commissions to media exposés, these institutions had to communicate their way through a storm of intense criticism. So, what lessons can we take from their experiences to strengthen our own communication strategies?

Transparency and accountability in leadership

When the Australian banking sector faced the fallout of misconduct inquiries, they learned why accountability matters. Leaders who fronted the public and owned their mistakes earned more trust than those who danced around the issues. Transparency fosters confidence.

For example, one major bank publicly admitted to lapses in governance and outlined a clear plan for rectification. The response — while not glowing — was far more forgiving than when others deflected or gave vague answers. As a leader, this means being upfront with your team about what's happening and why. Deliver clarity, even on bad news, so people trust you're not hiding skeletons.

Building a culture of openness

Under scrutiny, your team needs a safe space to ask tough questions, so build a culture of openness deliberately. Many Australian banks ignored warning signs from staff. After the inquiries, they invested heavily in internal feedback mechanisms, ensuring employees could raise red flags without fear of retaliation.

The most powerful technique I've learned to encourage openness is to lead with vulnerability. This means sharing challenges and lessons learned, especially during tough times. Openness is contagious, but someone needs to start it — and that someone is you.

Managing team morale

During the Royal Commission, many banking teams felt demoralised. Smart leaders in the sector tackled this by focusing on purpose. For instance, they highlighted how day-to-day activities still benefited customers and communities, despite the noise outside.

For your team, this could mean reaffirming their value and reminding them of the broader mission. Celebrate small wins to counterbalance the negativity. And most importantly, stay present.
Addressing stakeholders and the media
If there's one area where Australian banks have had mixed success, it's managing external communication. Some came out swinging, others issued robotic statements and a few managed to strike the right balance.

But the best approach? Be authentic and human. When banks framed communications around how their actions impacted customers (rather than just protecting their reputation) their messages resonated more deeply.

For example, one bank said, "We know we've let Australians down and we're working hard to rebuild your trust." Focus on outcomes, not excuses. Acknowledge the issue, outline the steps being taken and — this part is critical — commit to updates. People hate being left in the dark.

Learning from mistakes

Public scrutiny can feel like a pressure cooker, but it's also an opportunity to improve. While the Royal Commission exposed serious flaws, it also forced banks to revisit outdated policies, rethink customer engagement and strengthen internal processes.

So, when scrutiny reveals cracks, don't just patch them up. Dig deeper to identify root causes and improve your team's operations long-term. Use the feedback, however brutal, as a catalyst for growth. And don't forget to communicate these improvements — internally and externally. People appreciate leaders who show they've listened and acted.

Discover powerful communication techniques with ICML

Mastering communication during public scrutiny is about showing up and turning criticism into a springboard for improvement. Whether it's keeping the team motivated, handling tough media questions or owning up to mistakes, the Australian banking sector taught us that honesty, humility and proactive communication are your best tools.

So, next time the heat is on, channel your inner Aussie banker: be open, stay accountable and never stop learning. For more guidance on transparent communication, explore our Communication Skills course.