Over a quarter of Australians now bank with Credit Unions and Mutuals
Australian Credit Unions and Customer Owned Banks celebrate growing membership numbers on International Credit Union Day
Credit Union and Mutual executives have plenty to celebrate this International Credit Union Day as a growing number of Australians are moving their bank accounts to credit unions and customer owned banks. According to the World Council of Credit Unions’ report, 26.34% of Australians choose credit unions and mutual banks over larger banks. Internationally, Australia is leading the way with only Canada and the US ahead of them. There are now 79 credit unions and customer owned banks serving over 4 million members.
BCCM CEO, Melina Morrison said, “We are delighted to see the membership numbers grow and are not surprised more and more people are choosing credit unions over large banks. Because credit unions and mutuals are customer / member owned, there are no third party shareholders demanding more profits year on year. Credit unions and customer owned banks can give their profits back to their members in the form of lower interest rates for loans and less fees.”
“It’s no wonder Australians are voting with their wallets.”
“After the findings in the Royal Commission into misconduct in the banking superannuation and financial services industry, we were especially pleased to see government pass the proposed legislation, allowing full potential of the mutual sector for Australian economic diversity. Australians will be the ones to benefit from the level playing field.”
- On community investment – Using the internationally recognised London Benchmarking Group measures to track their community investment level year-on-year, Teachers Mutual Bank Limited discovered its community investment currently sits at 23 times the financial sector average for last year, at 6.86% of its net profit before tax.
- 12.5 per cent of the $52m paid to 107 senior managers at the top-10 largest customer-owned banks comprised bonuses. Westpac’s 25 “senior managers” bonus is 62% of pay; Bank Australia and Teachers Credit Union paid no bonuses
- Building societies and credit unions held about 1% of the assets in the banking system vs majors’ 76 per cent at end 2017
- The APRA quarterly statistics show: – Housing loan growth of 6.7% pa (compared with all ADI growth of 4.1% pa) – Deposits growth of 7.7% pa (compared with all ADI growth of 2.5% pa) – Total customer owned banking sector assets have now reached almost $111 billion