HomeView 2016 Media ReleasesReport reveals positive outlook for customer owned banking

COBA today welcomed a report which shows the customer owned banking model is thriving and momentum is expected to continue next year.

COBA today welcomed a report which shows the customer owned banking model is thriving and momentum is expected to continue next year.

KPMG Australia’s annual Mutual Industry Review found strong asset growth of 7.8%, compared to 5% for the overall banking industry.

KPMG said this strong performance by the customer owned banking sector was built on:

  • Continuation of strong credit risk management practices and well-defined risk appetites
  • Expansion of distribution networks leveraging digital reach and third-party distribution channels
  • Benefits from increased technology spend on new mobile platforms as well as transaction origination and servicing capabilities
  • Partnerships with start-up fintech companies which carry the prospect and opportunity for future disruption and growth in the banking industry.

COBA CEO Mark Degotardi said the report reflects well on the sector and its capacity to expand its 4-million strong customer base.

“It’s a positive endorsement of our sector’s investment in better products and services, innovation and strategic partnerships,” Mr Degotardi said.

“We also welcome KPMG’s support for implementation of regulatory reform to promote competition, including recommendations of the Senate Inquiry into Mutuals.

“COBA appreciates APRA’s engagement with us on implementing the Senate inquiry’s recommendation on regulatory capital for customer owned banking institutions.

“We are having a constructive conversation with APRA about expanding our capital options by gaining capacity to directly issue the highest quality regulatory capital instruments,” Mr Degotardi said.

Media Release143.42 KB

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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