They seek these banks for competitive rates, excellent service, and positive societal impact
Australia’s customer-owned banking sector, which includes mutual banks and credit unions, has seen its deposit and housing loan growth double compared to the broader banking system.
According to research conducted by Pollinate on behalf of the Customer Owned Banking Association (COBA), 75% of Australians believe that most other banks place profit above customer service, while customer-owned banks are reputed for offering more personalised services.
“Many Australians are drawn to the customer-owned banking sector because they want a bank that offers competitive rates, excellent customer service and has a positive impact on society,” said COBA chief executive Michael Lawrence (pictured above).
“Our banks treat their customers like a valued customer, rather than just a number. What gives the customer-owned banking sector that competitive edge is that our 55 member banks and credit unions are incredibly diverse. This means they have a deep understanding of their customers and the communities they serve, which is why they can provide specialised service and products.”
Last month, mutual bank P&N Bank was named Bank of the Year in the Roy Morgan Customer Satisfaction Awards, while credit union People’s Choice was named Home Lender of the Year in the Mozo Expert Choice Awards.
Meanwhile, COBA has recently introduced the Find-a-Bank online tool, aiming to help Australians connect with banks that match their professional needs and personal values.
“You don’t have to be in a specific profession or live in a geographic region to join a customer-owned bank, even if it is a specialised bank,” Lawrence said. “Most mutual banks and credit unions are open to anyone who wants to bank with them and is aligned with their values.”
Regulated by bodies such as APRA and ASIC, customer-owned banks meet the same stringent standards as major banks. Lawrence, however, pointed out that profits from these banks are reinvested into improving customer products and community support, distinguishing them within the industry.
“Customer-owned banks are essential to Australian banking, providing customers with competitive alternatives and ensuring they have options when it comes to service and products,” Lawrence said.
“Customer-owned banks are centred on helping customers and the communities they serve. Time and time again, they have proven that a customer-first focus delivers better outcomes for customers and communities.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
