The recently released Customer Owned Banking Impact Report for 2024 has revealed that Customer-owned banks are giving back to their communities at a rate nearly nine times higher than the major banks.
Customer-owned banks are also known as mutual banks, credit unions and building societies. They are owned by their customers who are members of the bank. In general, profits made are reinvested into better products and services for members, instead of being distributed to investors.
This report, commissioned by Customer Owned Banking Association (COBA), serves to highlight the sector’s contribution to Australia’s economic, social and environmental wellbeing. It also draws attention to the critical role customer-owned banks play in supporting competition in Australia’s banking sector, delivering better outcomes for all Australians.
A snapshot of the numbers (courtesy of COBA)
- Customer-owned banks offered home loan rates 0.4 percentage points lower than those from major banks, saving borrowers over $2,000 annually on a $600,000 mortgage.
- 89.5% customer satisfaction or the customer-owned banking sector as a whole compared to 75.4% for the “Big Four”.
- Credit unions and mutual banks allocated 5.2% of their profits — totalling $38.4 million — to community and charitable organisations. In comparison, the major banks contributed just 0.6% of their profits.
- Employee satisfaction is strong, as evidenced by an average staff tenure of 7.5 years – more than double the national average of 3 years and 4 months (according to the Department of Employment.)
“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,” COBA CEO Michael Lawrence said.
The recent International Credit Union Day (ICU Day) aimed 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,” Mr Lawrence added.
At Australian Mutual Bank, we're proud to be part of a global movement that’s building a better world for all. Since 1953, we have been a trusted financial institution, staying true to our cooperative principles and putting the financial wellbeing of our members at the core of our operations.
The Customer Owned Banking 2024 Impact Report is available here.
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