Consumers choosing customer owned banking institutions over ‘Big Four’

Print


Australians are continuing to look beyond the ‘Big Four’ with new data showing consumers are choosing customer owned banking institutions over the investor owned banks.

Data released today by the Australian Prudential Regulation Authority 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.

Australia’s customer owned banking institutions now hold more than $119 billion in assets. This is an increase of 1.6 per cent compared to the previous quarter. Conversely, the major banks total assets declined by 0.4 per cent in the past quarter.

Consumers are also choosing to place their deposits with customer owned banking institutions. The sector now holds more than $101 billion in deposits. The growth in deposits shows a 6.5 per cent year on year increase in deposits.

Customer Owned Banking Association CEO Michael Lawrence said consumers are sending a clear signal to the major banks.

“Consumers are sending a very clear message to the major banks; either put our interests first, or we’re going somewhere that will.

“The latest figures from APRA paint a clear picture of a sector that is continuing to grow as more Australians begin considering who it they choose to bank with.

“Australians want banking institutions they can trust to put their interests first and to do the right thing by them. After the findings of the Financial Services Royal Commission it’s no surprise people are looking beyond the ‘Big Four’.

“Consumers can see through the spin of the major banks. They know a leopard can’t change its spots, that’s why they’re taking their banking elsewhere.

“It’s important that regulators create an environment where challenger institutions can grow and compete with the major banks. With greater competition comes greater customer outcomes.
 
“Consumers should visit ownyourbanking.com.au to see how a customer owned banking institution can put them first.”

A PDF of this release can be downloaded here