Customer-owned banks have once again been named Australia’s most trusted banking sector, according to the latest Roy Morgan Bank Trust and Distrust Scores Report, while distrust worsened with the broader banking industry.
Here are five reasons customer-owned banks continue to earn and maintain the trust of Australians.
Customer-first approach to service
The report found Australians define trust using terms like ‘reliable’, ‘good service’, and ‘honest’. Customer-owned banks embody trust by consistently prioritising their members. They are owned by their members, which means their purpose is to create long-term value for them and their communities, rather than maximising investor returns.
This dedication to service has resulted in market-leading customer satisfaction ratings for the sector compared to major banks for over two decades. The Roy Morgan Customer Satisfaction Consumer Banking in Australia report revealed customer-owned banks achieved an 89.5% satisfaction rate, significantly higher than major banks’ 75.4%.
Significant community investment
Customer-owned banks are deeply rooted in the communities they serve and actively support grassroots organisations. They dedicate a substantial portion of their profits to community and charitable organizations.
The Customer Owned Banking Impact Report 2024 shows they gave back to community and charitable causes at a rate nearly nine times higher than the major banks.
This commitment strengthens local communities, providing a tangible benefit to members beyond banking services.
Competitive rates and fees
Unlike shareholder-owned banks that look to maximise shareholder returns, customer-owned banks are driven by a unique purpose: to prioritise their members.
This allows them to reinvest profits back into better services, and offer more competitive rates and fees.
Strong employee satisfaction and local focus
The customer-owned banking sector plays a vital role in supporting regional economies, with over 11,500 full-time employees and many mutual banks and credit unions headquartered outside major cities.
The sector demonstrates strong employee satisfaction, evidenced by an average staff tenure of 7.5 years – more than double the national average of 3 years and 4 months. This commitment to a thriving workforce contributes to exceptional service and strong community engagement.
Purpose-led model
Customer-owned banks, including mutual banks, credit unions, and building societies, have been providing purpose-led banking for nearly 180 years, collectively serving over 5.4 million Australians. Trust is something that is earned, and customer-owned banks’ consistent focus on customers has built deep trust within the community which explains why Australians continue to place their trust in mutual banks.
To find a customer-owned bank that aligns with your needs and values, you can visit findabank.com.au.