HomeMedia & ResourcesMedia ReleasesKPMG report highlights customer owned banks as an attractive alternative

KPMG report highlights customer owned banks as an attractive alternative

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COBA welcomes the KPMG Mutuals Industry Review 2018 and its endorsement of our sector’s performance in a tough business environment.

KPMG reports that mutual banks, credit unions and building societies performed well in 2018, underpinned by continued efforts to streamline operations, enhance products and services and invest in technologies to improve customer experience.

KPMG notes that being customer-owned means that the nature and the quality of a mutual’s relationship with its customers is different to its shareholder-return focused competitors and that mutuals are well placed to maintain stakeholder trust.

“As customer-owned institutions, mutual banks, credit unions and building societies have always existed to put people before profits,” said COBA CEO Michael Lawrence.

“We are not trying to squeeze our customers to please shareholders.

“Our model does not make us immune from trust issues but it certainly gives us an advantage on our shareholder-return focused competitors,” Lawrence said.

KPMG found that the financial performance of the customer owned banking sector improved in 2018 with significant balance sheet growth and technology spend along with growth in deposit levels and residential lending. The KPMG Report is based on a survey of 48 customer-owned banking institutions.

The Report identifies growing uncertainty around the regulatory environment due to the Royal Commission with respondents raising concerns about the potential for increased regulatory burden and a lack of proportionality in regulation.

“There are significant dangers of a ‘broad brush’ approach to banking regulation,” Lawrence said.

“Regulatory responses to the Royal Commission must recognise that if the same regulatory proposal is indiscriminately applied to all institutions, then it could harm smaller entities’ capacity to compete against major banks.”

For more information please contact:

Sally Mackenzie
Director – Strategy & Stakeholders
02 8035 8450 or 0412 721 663
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

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