Professional Services
Featured
29 October 2024
CUSTOMER-OWNED BANKS GIVE MORE
Community investment tops the big banks
CUSTOMER-owned banks are giving back to their communities at a rate nine times higher than the major banks, according to the Customer Owned Banking 2024 Impact Report.
Credit unions and mutual banks dedicated 5.2% of their profits to community and charitable organisations, totalling $38.4M. In contrast, major banks contributed 0.6% of their profits.
“Customer-owned banks are deeply rooted in the communities they serve, and often support grassroots organisations to meet the unique needs of their members and the local area,” Customer Owned Banking Association (COBA) CEO Michael Lawrence said.
“This International Credit Union Day, we are proud to showcase the incredible impact customer-owned banks have on Australia. Not only do members enjoy competitive rates and better services, but they also benefit from knowing their local communities are being strengthened,” he added.
Customer-owned banks are often leading the way in value. The report, which is written by leading economist Nicki Hutley, found that mutual banks and credit unions offered average variable home loan rates 0.4 percentage points lower than those offered by major banks. While individual rates vary between customer-owned banks, this average difference equates to over $2,000 in interest saved annually on a $600,000 mortgage.
“Customer-owned banks are owned by their members, which means they are driven by a unique purpose: to prioritise the people and the communities they serve, rather than squeezing profits out of customers to pay dividends to shareholders. That’s why customer-owned banks can deliver outcomes that genuinely benefit their members including competitive rates, market-leading service and significant contributions to their local communities,” Nicki Hutley explained.
However, the report states Australia ‘fares particularly poorly’ when it comes to competition in the banking sector which is dominated by the big four banks, with regulatory arrangements often disadvantaging smaller players.
“Customer-owned banks are essential for a truly competitive and dynamic financial system, providing Australians a distinct alternative to shareholder-owned banks. Government and regulators have important roles to play in taking an appropriate approach, and ensuring consumers have genuine choices when it comes to financial institutions,” Ms Hutley added.
Customer-owned banks also reinvest profits back into better services, which has resulted in market-leading customer satisfaction ratings for the sector compared to the major banks for over two decades.
With over 11,500 full-time employees and many mutual banks and credit unions headquartered outside major cities, the customer-owned banking sector plays a vital role in supporting regional economies. Employee satisfaction is strong, as evidenced by an average staff tenure of 7.5 years – more than double the national average of three years and four months.
With 55 customer-owned banks to choose from, COBA has developed Find-a-Bank; an online tool which helps Aussies find a purpose-led bank that aligns with their needs and values. To find a customer-owned bank that suits your needs and values, head to findabank.com.au
Featured
05 October 2024
HOLISTIC OFFERING FOR JOB SEEKERS
Salvos ramp up local support
THE recently launched St Marys Salvation Army Employment Connect Hub has opened its door to jobseekers offering a plethora of services leading to better opportunities.
Featured
19 August 2024
PSYCHOLOGY OF DECEPTION IN CYBER SECURITY
How cybercriminals manipulate us
DR JAMES CARLOPIO
CYBER security is not only a technical challenge, but also a human one.
Featured
20 April 2024
WSU AMONG THE WORLD'S BEST
Nursing tops in the top 50 globally
WESTERN Sydney University has been named as one of the world’s top universities for the study of 23 subjects in the latest edition of the QS World University Rankings by Subject, including being ranked in the top 50 for nursing.
WESTERN Sydney University has been named as one of the world’s top universities for the study of 23 subjects in the latest edition of the QS World University Rankings by Subject, including being ranked in the top 50 for nursing.
Featured
25 March 2024
LIVERPOOL SIGNS AGREEMENT WITH UNSW
Reputation as a university city grows
LIVERPOOL Council has signed a Memorandum of Understanding (MOU) with the University of New South Wales to foster a close working relationship which will see the University establish a presence in Liverpool.
Featured
17 February 2024
ASBETSOS TESTING AT GWS SITES
Schools and shopping centre closed
ELIZABETH FRIAS
ASBESTOS testing has commenced in four schools, a hospital, shopping centre and a park across Western Sydney and they have been closed for further testing by a taskforce.
Featured
06 November 2023
TODAY'S CAR BUYERS DISTRUST DEALER FINANCE
But relationships can sweeten the deal
TINA CLARK
POST-COVID has been a trying time for car dealers, as the ensuing car supply shortage resulted in extremely limited stock to sell, which has seen many dealers trying to make money in other ways, such as by increasing the costs of financing.
