Mutual financial institutions create stronger single voice: Friendly Societies join with Credit Unions, Building Societies
12 August 2008
Australian mutual financial institutions, who between them serve over six million members nation-wide, have expanded their single industry "voice" through a larger industry body.
Friendly Societies have joined forces with credit unions and building societies to promote the customer-owned model in financial services. From 31 July 2008, Abacus – Australian Mutuals, the industry body for credit unions and mutual building societies, also represents friendly societies under an agreement with the Australian Friendly Societies Association.
Abacus now speaks for 170 financial providers that have more than $70 billion in assets under management and provide services to more than 6 million Australians (see fact sheet).
"Australia's mutual financial services sector now has an even stronger national voice to work with Government and regulators, and to promote our competitiveness to the community," said Louise Petschler, CEO of Abacus.
Australian Friendly Societies Association spokesman Mr Chris Wright said: "We have worked closely with Abacus in recent years and it became obvious that our member organisations have a lot in common. This new agreement builds on our shared values and aims."
Friendly societies enable their members and the community to make responsible provision for life events, with a range of investment and insurance services. Friendly societies provide investment, savings and other products that help people become financially independent. These include education savings plans, investment products and health insurance. Most friendly societies are registered under the Life Insurance Act and are regulated by the Australian Prudential Regulation Authority (APRA).
Credit unions and mutual building societies are Authorised Deposit-taking Institutions (ADIs) regulated by APRA under the Banking Act 1959. They offer a full range of retail banking and financial services products to their members.
"The values of friendly societies and mutual ADIs are closely aligned and centred around trust, helping people to gain financial independence and putting the needs of members first," said Ms Petschler.
"Putting the customer first is not a slogan for mutuals – it is the reason we exist. Like credit unions and building societies, friendly societies benefit all consumers by delivering competition and choice in the broader financial services market," Petschler said.
"Abacus will provide friendly societies with strong advocacy and representation services, and support friendly societies in offering competitive services to members and the community," said Mr Wright.
For more information:
Louise Petschler
CEO, Abacus – Australian Mutuals
(02) 8299 9034; (0408) 239 226
Chris Wright
President, AFSA
(08) 8236 4701, (0419) 810 190
For a full list of Abacus members around Australia go to www.abacus.org.au
