Mutuals deliver banking services across Australia

10 November 2006

The mutual financial services sector offers a different kind of banking as alternative providers of community-focused banking and financial services for all Australians.

“This difference is based on credit unions’ and mutual building societies' community ethos and principles of fairness and member benefits. These features resonate with our 4.5 million members across Australia,” Adrian Lovney, General Manager, Abacus - Australian Mutuals said.

“The 2006 Australian Prudential Regulation Authority’s (APRA) Points of Presence survey suggests a 1% reduction in credit union branches in 2006 compared to 2005, Abacus believes this reflects consolidation in the credit union sector and not a reduction in the quality and convenience of member services. Looking at mutuals more broadly, the 2006 data also shows a growth of 25 extra building society branches.

“Mutual services have remained steady since before the POP survey began, which was a response to declining bank branches in regional Australia. Abacus welcomes the growth in bank branch levels, which redress the declines of the 1990s, as a sign of the health and competition in the ADI sector.

"Abacus' own industry data shows that:

• credit unions have consistently provided over a 1,000 branches and agencies to their members since the late 1990s;
• building societies have grown their branch networks;
• each of these branches provide a full range of services to members; and
• every mutual also offers convenient electronic and phone banking services to their members.

“This consistency is reflected in the high member satisfaction levels the mutual sector receives within the community.

“CANNEX recently calculated that members of a mutual save on average $112 each year as a direct benefit of banking with organisations that they own. This ‘mutuality dividend’ is the amount of money saved in transaction fees, higher interest rates on savings and other benefits enjoyed by members of credit unions and building societies.

"Credit unions and building societies believe in fairer fees, better services and a commitment to their community. This is not a new marketing slogan but it is part of the DNA of the mutual sector,” Mr Lovney said.

For more information:

Julie Sheather
Senior Adviser – Media & Public Affairs
(02) 8299 9024; (0409) 514 643