Why Australians are looking to customer owned banking for home loans


Credit Union SA

Member Experience Team

8 July 2019

| Home Loan

Data released last week by the Australian Prudential Regulation Authority (APRA) has shown that over the past 12 months the customer owned banking sector’s housing loans have increased by 8 per cent while the major banks grew by just 2.6 per cent.¹

“Consumers are sending a very clear message to the major banks; either put our interests first, or we’re going somewhere that will,” said Customer Owned Banking Association (COBA) CEO, Michael Lawrence.2

But, is this really the reason for the consumer shift and what does this actually mean for you? Let's take a deeper look at this new report and make things a little clearer!

What is APRA?

APRA is an independent statutory authority that supervises institutions across banking, insurance and superannuation. It promotes financial system stability in Australia.

APRA’s job is to oversee the Australian banking industry and make sure everyone is doing the right thing. They publish quarterly reports with key statistics from all Authorised Deposit-taking Institutions including banks, credit unions, mutual banks and building societies. It’s really a way to keep industry results 100% transparent and honest.

Why is the new APRA report so important?

Well this is the interesting bit – it highlights a shift in consumer preferences.

The data indicates that many Australians are starting to look beyond the major banks for home loan products and services.

COBA CEO Michael Lawrence believes it’s because “consumers can see through the spin of the major banks (thanks to recent Financial Services Royal Commission findings). They know a leopard can’t change its spots, that’s why they’re taking their banking elsewhere.”3

Our Distribution Senior Manager, Karen Beard thinks there’s more to the story.

Karen has had over twenty years of experience in mutual banking and believes it’s not just a mistrust in the ‘Big Four’ that’s shifting consumer preferences, but also competitive rates.

“People are doing more research and they’re starting to realise customer owned banking institutions, like us, don’t have the pressure to maximise profits to pay external shareholders. This means profits can actually go back into better rates and fairer fees for customers. This is evident when looking at our home loan comparison table – it’s clear you can make big savings on your monthly home loan repayments by switching from the ‘Big Four’.”Karen Beard

Distribution Senior Manager

What does this mean for you?

APRA’s findings may spark you to review your home loan and make sure you are getting the best deal across both fees and rates.

Your current home loan may still be right choice for you, but it’s important to periodically check and know for sure.

We can help you review your home loan and finances - the first step is to talk to us. Why not make an appointment with one of our friendly Mobile Lending Managers who can come to your home or office at a time that suits you. Or call us on (08) 8202 7777 or visit us at 400 King William Street, Adelaide between 8am – 8pm weekdays or 8am – 2pm Saturdays.

1 Australian Prudential Regulation Authority (APRA) ‘March 2019 Quarterly ADI Performance Statistics and Quarterly ADI Property Exposures’ 19 June 2019

2 Customer Owned Banking Association (COBA) ‘Consumers choosing customer owned banking institutions over ‘Big Four’ 19 June 2019

3 Customer Owned Banking Association (COBA) ‘Consumers choosing customer owned banking institutions over ‘Big Four’ 19 June 2019

This is general advice only and doesn’t take into account your objectives, financial situation or needs. Conditions, fees and lending criteria apply and are available on request.

Join Credit Union SA

Join Credit Union SA

Say goodbye to big-profit banks and enjoy the benefits of being part of a credit union that helps you do more with your money.

We're here to help

Contact us

Call us on (08) 8202 7777 or visit us at 400 King William Street, Adelaide