Banks are improving their approach to customers but still have a way to go to prevent "back-sliding", an independent reviewer warns.
In his seventh quarterly assessment of responses by the banks to lift their performance, independent governance expert Ian McPhee has praised changes to date.
But the former auditor-general reports three of 13 planned measures remain outstanding relating to the publication of principles and policies around remuneration and incentives, and the introduction of a revised banking code.
These measures, which have been consulted on and developed, will take time to put in place once bank policies have been established, Mr McPhee says.
"While there is still more to be done by the industry to embed the reforms, dispel some lingering concerns about the industry's bona fides ... and achieve better outcomes in the eyes of customers, it has been very worthwhile to see the improvements introduced to date," he writes in the report, released on Thursday.
"The early signs are showing positive results but it is important that the industry make every post a winner in terms of the commitments it has made. The corollary is there should be no back-sliding."
His findings come as the banks seize on new research from Edelman Intelligence showing 77 per cent of 1000 consumers surveyed think their main bank is becoming "more customer-focused", up 14 per cent since June.
"Although there's still a long way to go to restore trust and confidence in the industry, it's encouraging that the impact of these reforms is being recognised by customers," Australian Bankers' Association deputy CEO Diane Tate said.
But there was a drop in satisfaction in a range of other areas, including supporting customers experiencing financial difficulties and funding a new compensation scheme for people given bad financial advice.
The banks will come under strong scrutiny over the next year through the royal commission into financial services.
Mr McPhee's final report will be released by April 21.
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