The Customer Owned Banking Association has claimed a victory over the major banks after new figures found that customer owned banking institutions were beating the big four on housing loan growth.
The Australian Prudential Regulation Authority (APRA) this week released its Quarterly Authorised Deposit-taking Institution Performance Statistics for the June quarter, which showed that consumers are responding to the products and service offered by the customer owned banking sector.
The regulator’s quarterly statistics reported that housing loans from customer owned banking institutions grew by 7.7 per cent in the last year, compared to the major banks’ 5.6 per cent.
The sector also increased deposits by 7.3 per cent annually, well above system growth and the 5.4 per cent recorded by major banks.
Total customer owned banking sector assets now exceed $108 billion.
“These results show Australian consumers are responding to the great products and service offered by mutual banks, credit unions and building societies,” COBA director of policy Luke Lawler said.
“The APRA statistics serve as a continuing vote of confidence in the customer owned model which brings something fundamentally different to the retail banking market.
“Our ownership model puts the customer first through excellent service and highly competitive home loans, personal loans, credit cards and deposit products.
“Customer owned banking institutions are regulated in the same way as investor-owned banks but our focus is entirely on customers, without the conflict of interest between customers and shareholders.
“These growth figures underline our sector’s capacity to expand our customer base of more than four million Australians.”