For those fed up with big bankers' bonuses and the high interest rates that feed the few by taking money from the many, there's customer-owned banking. The idea has taken off in Australia, with four million Australians calling themselves members of a customer-owned banking organisation, who in turn manage $97 billion in assets.
Now, customer-owned institutions – which includes mutual banking organisations, building societies and credit unions – are looking to build on this success with the new Senate Inquiry into Co-operatives and Mutuals.
The Inquiry tabled a plan on March 17 to combat the greed and self-serving nature of the big banks, and the Senate will share its thoughts on how mutuals can continue to offer a better alternative.
The Customer Owned Banking Association's CEO Mark Degotardi said Aussies now have a better alternative than ever before.
"Now is an exciting time for the customer-owned model. While other models are failing to live up to basic values and ethical standards, we're getting on with providing a truly consumer-focused way of banking," he explained.
"We represent a genuine alternative to our listed competitors. We are strong, profitable businesses but our single focus is on our customers, not on maximising returns to shareholders."
What is customer-owned banking, we hear some of you ask. Well, it is simply a way of banking where profits are returned to members – the bank's customers – instead of stuffing someone else's pockets. The same options are offered as the big banks, from transactional accounts to home loans, except the intention isn't about maximising our profit margins.
The next question could be "why is customer-owned banking important?" Well, in an age when banks are going well out of their way to fool you, taking more of your money, and doing countless other dodgy dealings, we think putting the customer first is a pretty good idea.
It's an exciting time for mutual banking organisations. If you'd like to find out more, give CAPE a call on 1300 330 056.
