6 billion good reasons to switch: bank with a mutual
11 August 2010
New profit figures released today from a major bank will have shareholders celebrating and customers wondering.
"Some bank customers today may well be wondering what's in it for them. With these kinds of huge profits, bank shareholders will be happy – but what about their customers?" said Louise Petschler, CEO of Abacus – Australian Mutuals.
Petschler says if consumers aren't happy with their bank, then they should put their money with institutions that really put them first: mutuals.
"It's simple: mutual banking is better. Credit unions and building societies are owned by their members, they don't pay dividends to shareholders or make massive profits.
"And since all credit unions, building societies and banks in Australia have the same strict standards of prudential regulation and the Government guarantee on deposits, consumers don't have to fall for the 'bigger must be better' fallacy.
"We want consumers to know there is another banking choice for them – one that puts them first. So if you are a major bank customer wondering when you are going to get your fair share, stop wondering and take action. Vote with your feet and take your business to a credit union or a building society.
Mutuals are all regulated in the Australian banking system to the same stringent standards as banks are by APRA and under the Banking Act, 1959 – but their members own them, and that gives excellent value back to members in the form of competitive pricing and interest rates and outstanding customer service.
"The banks have been trying to match us in customer service for a while now, but every Roy Morgan 'Customer Satisfaction: Consumer Banking' survey in Australia each month shows credit unions and building societies leading the major banks – and they have done so for years," said Petschler.
"The highest customer satisfaction is firmly in the hands of mutuals: credit unions and building societies. June's figures say it all: the major banks are at 73.3% satisfied customers, whereas credit unions are at a huge 86.3% and building societies at an impressive 89%. This is great news for consumers who are not happy with their current banking situation and want to shop around.
"For banking that is competitive, has great rates and puts you first, it's clear: switch to a mutual.
"It's banking at its best. Credit unions and building societies put their customers first with great service and great rates," said Ms Petschler.
For more information, please contact:
Pamela Eldridge
Senior Adviser – Media, Public Affairs
(02) 8299 9024; 0423 843 790;
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