Many of us are familiar with the ‘Big Four’ banks who are owned by their investors and as a result have a considerable focus on shareholder returns.
What some Australians may not be as familiar with is that there is a customer-focused alternative – the customer owned banking model of your local credit union.
Investor owned banks maximise profits to pay dividends to shareholders. This creates a tension between customers of the business and its owners (shareholders). In many cases, the majority of these shareholders are large institutional investment banks – not mum and dad investors.
This tension doesn’t exist in the customer owned model because the customers are the owners. There is no question about who comes first – customers or investors. At all times, the customer remains the focus.
This creates a different culture where customer satisfaction is key. Profits generated aren’t distributed to third party shareholders, they are used to keep more branches open in local communities, employ more local staff, support local sponsorship and donation programs and provide a genuine local banking alternative.
While there is a big difference in ownership structure, it’s important to also recognise that customer owned banking institutions are regulated in exactly the same way as the major banks and eligible deposits are also protected under the government Financial Claims Scheme.
Goulburn Murray Credit Union is proud to be customer owned and has been providing a local banking alternative in our region for over 60 years. Profits are used to keep ten local branches open, employ over 62 local staff, support over 120 clubs and groups via sponsorships and donations each year and provide a genuine and convenient local banking alternative.
If you are looking for banking where you are more than just a number, pop in and meet the GMCU team at your local branch today.
