Community banking benefit measured
18 October 2006
Members of credit unions and mutual building societies across Australia are saving an average of $112[1] each year as a direct benefit of banking with organisations they own.
Chair of Abacus – Australian Mutuals, John Brogden, said the "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 mutual building societies.
"This is money that, in the case of bank customers, would be diverted away from customers and into the profits of listed banks," Mr Brogden said.
"And the benefits our members enjoy are in addition to millions of dollars made in financial and in-kind contributions to communities across Australia."
Abacus – Australian Mutuals, is the newly formed peak body for mutual building societies and credit unions. Collectively, mutuals are the 6th largest force in banking in Australia, serving over 4.5 million Australians with assets under management of around $50 billion.
Speaking at the conclusion of the industry's convention in Perth today, Mr Brogden said the sector is stronger than ever.
"As a result of uniform national regulation, the smallest credit union is now as strong as the biggest bank," Mr Brogden said. "We consistently rank higher than other financial institutions in customer satisfaction, and have a new sense of unity and purpose.
"We are extremely proud to offer a different kind of banking. We have been offering community-based, member-focused alternatives to the banks for 150 years in Australia," Mr Brogden said.
Credit unions across Australia are joining those in 91 other countries to celebrate International Credit Union Day tomorrow, 19 October 2006. Credit unions provide more than 157 million people worldwide with an opportunity to grow through access to safe savings, affordable credit and the chance for a better future.
For more information:
Julie Sheather
Senior Adviser – Media & Public Affairs
(02) 8299 9024; (0409) 514 643
For a full list of Abacus members around Australia go to www.abacus.org.au
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[1] As measured by Cannex, Australia’s leading consumer finance research firm. The member valuation analysis from June 2005 to June 2006 measured deposit rates and lending rates, as well as all fees associated with deposits and loans during the year. On average across 1.25m accounts Cannex found that each member derived an average of $112.53 in benefits. This is in addition to the average $77 p.a. increase in retained earnings per member ultimately returned in the form of better products and services.
