Increasing the digitization of services and the removal of government stimulus measures will test the big four banks as they struggle to turn their reputation around after the royal commission, according to Accenture.

“Australian banks have made progress in restoring consumer confidence following the Royal Commission into banking abuses. But these efforts face another major test as the rapid and sudden shift to digital banking interactions during the pandemic threatens relationships and trust banks work to rebuild them,” said Alex Trott, financial services partner at Accenture.

“As banks look to a wider digital adoption as a way to reduce costs and remain accessible, Australian banks face a critical juncture in 2021 as consumers will seek more empathy and assistance as government support for COVID retires. Banks that can balance their commercial needs with the human connection with their customers will be better off.”

However, despite the royal commission's reputation, many Australians are still happy to get financial advice from their bank, with 64 per cent believing their bank has their best interests in mind "always" or "most of the time" and 72 percent believing the advice provided was "smart, personalized and well-informed."

However, less than a third (29 per cent) of Australians trust banks "a lot" to look after their long-term financial wellbeing compared to 43 per cent two years ago, while many do not trust the ability to get financial advice through digital channels.

“Digitalization has removed the 'humanity' from certain banking interactions where consumers are comfortable alone. That's good, but the human element is still critical when customers need that support and current operating models are simply not built to support and deepen those relationships,” said Mr Trott.