The Australian Banking Association (ABA) on Thursday released updated industry guidelines to improve how banks identify, prevent and respond to financial abuse, which occurs when a person exerts control to exploit or monitor someone else's access to money and other assets.

The updated guidelines include expanded support for customers experiencing vulnerability, a strengthened focus on product and service design, including safer ways for customers to disclose abuse, as well as stronger protections in cases involving third-party authorities where there is a risk of abuse.

"For many people, their bank is the first place they turn when they are trying to regain control of their finances," said ABA CEO Simon Birmingham.

"The guideline is clear that banks should make sure a customer only has to explain their situation once and agree a safe way and time to stay in touch," he added.

Under the new guidelines, banks may consider using transaction monitoring, including artificial intelligence-enabled tools to help identify potential financial abuse.

Commonwealth Bank of Australia (ASX:CBA), ANZ Group Holdings (ASX:ANZ, NZE:ANZ), Westpac Banking (ASX:WBC, NZE:WBC), and National Australia Bank (ASX:NAB) are among the members of the ABA.