HomeView 2014 Media ReleasesFSI a chance to support trusted banking model

The final report of the Financial System Inquiry due out shortly is an opportunity to rebuild consumer trust in banking by promoting genuine competition and delivering a level playing field for the customer-owned model.

In a speech yesterday, FSI Chair David Murray said “in the financial services industry, we are clearly going through a post-crisis period where trust has had to be rebuilt”.

“David Murray is right to say that consumers’ trust in the big banks has been shaken,” Customer Owned Banking Association Acting CEO Mark Degotardi said.

“But there is a simpler way of rebuilding trust than taking on the mammoth task of re-engineering the organisational culture of the big bank shareholder model – start with giving the customer-owned banking model a fair go in the regulatory framework.

“Our record speaks for itself – market-leading customer satisfaction, where the customer is the sole focus, and where ethical and responsible banking institutions invest in their customers and their communities,” Mr Degotardi said.

“Trust is an inherent strength of customer owned banking.

“We have asked the FSI to recommend reforms to level the playing field and to build into the regulatory framework a genuine commitment to promoting competition and choice.”

COBA’s own commissioned research demonstrates there is a trust issue. A poll from Essential Research found 62 per cent of Australians have little or no trust in the big four banks to give independent financial advice.

“The upcoming FSI final report is an opportunity to recognise customer owned banking’s strengths, to deliver competitive neutrality, and to empower consumers to exercise genuine choice,” Mr Degotardi said.

“It’s time to start looking to banking institutions outside the big four to deliver on the community’s expectations of trustworthy, responsible banking.

“With more than 4 million customers, Australia’s mutual banks, credit unions and building societies are well placed to take up the challenge if given a fair go in the regulatory framework.”

For more information please contact:

Daniel McDougall, Senior Manager – Media and Communication
02 8035 8444 or 0407 637 541, This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Customer Owned Banking Association is the industry body for credit unions, building societies, mutual banks and friendly societies.  See coba3.nexusone.com.au

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