Calls for more promotion of the trusted banking model

10 July 2015

The Customer Owned Banking Association (COBA) has called on policymakers and regulators who’ve run out of patience with listed banking institutions, to do more to promote the customer-owned model.

In its submission to the Federal Senate inquiry into co-operative, mutual and member-owned firms, the association has stated the need for an improved environment to better accommodate the customer-owned model. COBA has called for action in specific areas including regulatory capital, tax and empowering consumers.

COBA CEO Mark Degotardi, asserted that the customer-owned model delivers “…ethical, trustworthy and competitively-priced financial services, with excellent customer service. Yet our model doesn’t enjoy competitive neutrality and the regulatory framework doesn’t make it easy for consumers to make an informed choice about different providers in banking and financial services.”

Mr Degotardi added “Regulators such as ASIC and APRA now say they are targeting the ‘culture’ of listed banks but they should also be promoting the alternative customer-owned model that always puts the consumer first.”