CUSTOMER-OWNED banks are making a significant difference in their communities, according to the recently published Customer Owned Banking 2024 Impact Report. The report reveals that credit unions and mutual banks invested 5.2 per cent of their profits, totaling $38.4M, into community and charitable initiatives, while major banks contributed a mere 0.6 per cent by contrast.
Highlighting the close ties and commitment of support that customer owned banks share with their local communities, CEO of the Customer Owned Banking Association (COBA), Micheal Lawrence said, “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.
“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.
The report, authored by economist Nicki Hutley, also shows that customer-owned banks offer average variable home loan rates 0.4 percentage points lower than those of major banks. This difference could lead to savings of over $2,000 annually on a $600,000 mortgage.
Hutley pointed out that customer-owned banks prioritise their members and communities instead of focusing on profit for shareholders, which allows them to offer better rates and outstanding service. However, the report also highlights the need for increased competition in Australia’s banking sector, which is largely dominated by the big four banks.
Playing an essential role in regional economies, the customer-owned banking sector also employs more than 11,500 full-time staff and plays an essential role in regional economies, while holding an average employee tenure of 7.5 years.
For individuals who are interested in finding a customer-owned bank that suits their unique needs and requirements, the COBA offers an online tool called Find-a-Bank, which you can access here: https://www.customerownedbanking.asn.au/consumers/find-a-bank/
You can read the full Customer Owned Banking 2024 Impact Report by following this link: https://member.customerownedbanking.asn.au
