Unity Financing Corporation welcomes growing interest in customer-owned banking institutions over 'Big Four'

26 June 2019

Big banks should take note with new data revealing growing consumer interest in customer-owned banking institutions, Unity Financing Corporation CEO Peter Lock said today.

Data released by the Australian Prudential Regulation Authority (APRA) last week showed customer-owned financial institutions were growing much faster than the big banks.

Over the past 12 months, the customer-owned banking sector’s housing loans have increased by 8%, while the major banks’ grew by just 2.6%.

Additionally, total assets held by Australia’s customer-owned banking institutions have grown to more than $119 billion, up by 1.6 % compared to the previous quarter. Meanwhile, the major banks’ total assets declined by 0.4% in the past quarter. 

In contrast to the big banks, Unity Financing has seen continued customer uplift and its total home loan portfolio has grown to over $8 billion. They are now looking to expanding their operations to service some of the newer and fast growing areas of south-east Queensland and even expanding interstate.

Unity Financing Corporation CEO Peter Lock said, “The latest figures from APRA are evidence that Australians are placing a greater focus on becoming more informed on who they choose to bank with.

“That’s why it’s so important for financial institutions to keep the needs of their customers’ top of mind and adapt accordingly.”

Mr Lock also acknowledged the role of the banking Royal Commission in shining a spotlight on the stark difference in operating models between the big banks and customer-owned institutions. 

“It really is no surprise that consumers are looking beyond ASX-listed banks and turning to the mutual sector,” Mr Lock said.

“The biggest difference is that listed banks exist to maximise the dividends they pay to shareholders. Mutuals are the opposite - owned by our customers, not shareholders. We exist solely to deliver great value to our customers and put their needs first.

“APRA’s latest findings are an indication that consumers want to bank with an institution that puts their interests first and aren’t afraid to move somewhere that will.”

For more information about the customer-owned banking difference visit www.ownyourbanking.com.au.