The report, released in Albury on Thursday, October 17, showed that credit unions and mutual banks dedicated 5.2 per cent of their profits to community and charitable organisations, totalling $38.4 million.
In contrast, major banks contributed 0.6 per cent 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 chief executive Michael Lawrence said.
And the buck doesn’t stop there.
The report found that customer-owned banks lead in home loans, offering variable rates that are 0.4 percentage points lower than those available from major banks.
This translates to over $2000 in interest savings 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,” economist Nicki Hutley said.
“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.”
However, the report warns that Australia’s banking competition fares “particularly poorly”, with regulatory structures often favouring larger banks.
Ms Hutley said the Federal Government and regulators held a large interest in adopting an appropriate approach to ensure consumers had choices regarding financial institutions.
The customer-owned banking sector plays an important role, as do its employees — and they do it well.
In fact, with an average staff tenure of 7.5 years, they do more than double the national average well.
Along with launching the survey, COBA has also introduced Find-a-Bank, an online tool designed to help Australians find a purpose-led bank that reflects their values.
To access Find-a-Bank, visit customerownedbanking.asn.au/consumers/find-a-bank/
To read the complete Customer Owned Banking 2024 Impact Report, visit tinyurl.com/3fbj4tkd
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