Credit union, building society ads back on air
15 September 2010
Australia's credit unions and mutual building societies will launch the second run of a national advertising campaign, 'Back to you', from Sunday.
Abacus – Australian Mutuals, the industry body, is championing the campaign, which highlights the benefits of the strong and competitive customer-owned banking sector.
The first burst of the campaign sparked controversy when the Australian Bankers' Association complained about the presentation of example savings. Abacus has agreed to changes in consultation with ASIC, using revised calculations and more detailed explanations.
"We're excited to be back on air," said Louise Petschler, Abacus CEO. "We've got a simple message – if you put credit unions and building societies on your shopping list, you will find real savings compared to the offerings of major banks."
The campaign airs nationally from September 19, supported by a website, www.comesbacktoyou.com.au. The ads flag the savings that could be made based on comparisons between advertised rates for selected credit unions and building societies and the four major banks.
"Our research over several points in time showed that potential savings of $30,000 or more could be achieved, with average savings in our results even higher[1].
"We're happy to be conservative in our claim – a $30,000 saving is a great incentive to shop around.
"Abacus has worked with ASIC to ensure that the messages and content of the campaign are clearly disclosed. We are confident that our first ads did this as we tested them carefully – our industry code and values require us to be honest and upfront.
"Of course, we were also keen to work with ASIC to improve the clarity of our messages. We appreciate ASIC's note of our cooperative approach[2], and thank them for their work with us.
"Credit union and mutual building society profits go back to members in the form of better rates, fairer fees, excellent products and outstanding service," Ms Petschler said.
"Over four and a half million Australians already bank with a credit union or mutual building society. We know many consumers are worried about competition in banking. We want to encourage more people to take a look at our strong, safe and competitive banking option.
"As a member of a credit union or building society, it all comes back to you," said Petschler.
For more information, please contact:
Pamela Eldridge
Senior Adviser - Media, Public Affairs
(02) 8299 9024; 0423 843 790
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
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[1] Savings calculation was based on advertised standard variable home loan rates offered by the big four banks with four competitive credit unions and building societies (CUBS) for a $300,000 mortgage over a 25 year period. CUBS used are open to the public. The calculation was undertaken using four, randomly selected points in time from March – August 2010, producing an average of $38,000 as an example saving.
[2] http://www.asic.gov.au/asic/asic.nsf/byHeadline/10-193AD%20Abacus%20reviews%20advertising%20in%20response%20to%20ASIC%E2%80%99s%20concerns?opendocument
