Credit unions, building societies: real competitors to Big 4
25 October 2010
The banking competition debate was furthered with a welcome voice today, as banking commentator Michael Pascoe correctly identified the mutual sector as genuine competition to the big banks; the nation's credit unions and building societies.
"While debate about the undeniable oligopoly of the big four has been fierce, many commentators neglect to mention the genuine competition that exists in the banking market already: credit unions and building societies," said Louise Petschler, CEO of Abacus Australian – Mutuals.
"While the Government needs to act to help the smaller competitors more effectively compete against the big four, there is no doubt consumers can benefit by switching to one of the many credit unions and building societies who are in the market and actively lending, and offering excellent products and choice for consumers.
"The article in today's Fairfax Media Business Day by Michael Pascoe correctly stated the high regulation of Australia's credit unions and building societies, and what they can offer consumers, highlighting how they regularly dominate key categories in top banking products on financial comparison website Cannex Canstar," said Petschler.
The article states:
Australia has well-regulated, highly competitive alternatives to the big banks. APRA is all over the credit unions and building societies, right down to interviewing individual board members, to make sure they're as safe as the bigger boys. The ratings agencies might not quite agree, but an examination of proportionate dud loans over the past few years would show most of the mutuals have done much better than the banks.
And, being mutuals, thus returning profits to customers, they can make a good offer.[1]
"Pascoe is right on the money," Petschler said.
"Consumers looking outside the banks should shop around with credit unions and building societies. Go to www.comesbacktoyou.com.au for more information."
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] http://www.smh.com.au/business/the-real-way-to-keep-banks-honest-20101025-16zho.html?posted=sucessful#makeComment
