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Why Australians Are Choosing Customer-Owned Banks

Why Australians Are Choosing Customer-Owned Banks
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The Australian banking landscape is experiencing a shift, with an increasing number of Australians choosing customer-owned banks for their mortgages and savings.

This trend reflects a desire for a more personal and community-focused banking experience, with mutual banks and credit unions leading the charge.

The Growing Popularity of Customer-Owned Banks

Recent data shows that customer-owned banking sectors have doubled their growth of deposits and housing loans compared to the overall banking system.

These banks’ commitment to competitive rates, excellent customer service, and societal impact is attracting Australians who are tired of profit-driven banking.

In fact, 75% of Australians feel that most banks prioritize profit over customer service, according to research conducted by Pollinate. In contrast, customer-owned banks offer personalised service and treat customers as valued individuals, rather than just numbers.

Diverse and specialised Banking Options

With 55 customer-owned banks across the country, Australians can choose banks that align with their specific needs and values. For instance, there are banks catering to frontline workers, regional Australians, and those seeking positive environmental and societal impact.

Additionally, many customer-owned banks offer shared equity schemes to help eligible customers buy homes sooner with less deposit required. These specialised options demonstrate the sector’s dedication to supporting customers’ diverse needs.

Trust and Community Focus

Customer-owned banks are recognised for their trustworthiness and community involvement. Roy Morgan’s research has shown that they are the most trusted banking institutions in Australia.

These banks are held to the same high standards as major banks by government regulators but invest their profits back into better customer products, services, and community support.

In April, mutual bank P&N Bank was named Bank of the Year in the Roy Morgan Customer Satisfaction Awards, highlighting the high level of customer satisfaction these institutions achieve.

The growing preference for customer-owned banks in Australia underscores a desire for a more personalised and community-centred banking experience.

For those looking to find a bank that suits their needs and values, the online tool Find-a-Bank offers a helpful resource.