Australia’s customer-owned banking sector has told a parliamentary inquiry into intergenerational housing inequity that purpose-led, competitive lending and innovative community partnerships can help tackle the country’s housing challenges.
Appearing before the Select Committee on Intergenerational Housing Inequity today, the Customer Owned Banking Association (COBA) highlighted the sector’s long history in helping everyday Australians, essential workers, and vulnerable communities achieve the dream of homeownership.
COBA Senior Manager Policy Robert Thomas told the inquiry that the country’s 47 mutual banks and credit unions, serving over 5.4 million Australians, were built on addressing financial exclusion and continue to lead on practical solutions.
“Housing inequity is not a new phenomenon; in many ways, inequity is the very reason our sector was formed,” Mr Thomas said.
“When traditional institutions refused to lend to working-class Australians or single women, everyday people pooled their money to help one another buy homes. Today, 95 per cent of our lending is for home loans, with 80 per cent supporting owner-occupiers.”
Mr Thomas was joined at the hearing by Bank First Chief Executive Officer Michelle Bagnall and Bank of us Chief Executive Officer Paul Ranson, who told the committee how mutual banks are delivering solutions tailored to the specific needs of essential workers and regional communities.
In Victoria, Bank First is collaborating with cooperative housing models to deliver innovative housing solutions for essential workers, including nurses and teachers, in the communities they serve.
“Bank First’s core focus is on ensuring our members can access the right housing for them, in locations that are close to their work and community. As a member-owned bank, we offer a range of options and leverage all available policies and initiatives so we can support our members into housing faster,” Bank First CEO Michelle Bagnall said.
In Tasmania, Bank of us serves as the sole lending partner for the Tasmanian Government’s MyHome shared equity program, helping 3,000 Tasmanians into homes with deposits as low as 2 percent since 2022.
“Helping more than 3000 Tasmanians into a home is a milestone we’re incredibly proud of. But what inspires us most are the individual stories behind that number – people and families who now have the security of a place to call their own. Every one of those stories is a reminder of why MyHome matters and why we’re so proud to be part of it,” Bank of us CEO Paul Ranson said.
The inquiry also heard evidence of broader mutual banking initiatives, including Bank Australia’s financing of more than $450 million to community housing providers and $260 million to Specialist Disability Accommodation, as well as Police Bank’s HOPE Housing shared equity partnership for frontline workers.
“Financial inclusion has been the cornerstone of customer-owned banking since our inception. We stand ready to continue innovating and collaborating with the government to help more Australians unlock the door to a home of their own,” Mr Thomas told the committee.
COBA stressed that although increasing housing supply is critical, a diverse banking sector is important to give Australians access to purpose-led institutions offering competitive rates, tailored products, and market leading service.
“A competitive and diverse banking sector is essential to ensure everyday Australians have fair access to finance and genuine consumer choice. We are proud of the role we play in that ecosystem, and we welcome the opportunity to discuss how we can do even more,” Mr Thomas said.
The customer-owned banking sector contributes approximately $2.6 billion annually to the Australian economy, employing 12,000 people with many head offices situated in regional communities1. Importantly, these mutual profits remain entirely within Australia.
That $2.6 billion translates directly into real jobs and local investment, Mr Thomas explained.
“Banking with a mutual means profits stay right here in Australia, reinvested directly into the local economy and the communities our members serve.”
ENDS
For further information or to arrange interviews, please contact Mira Palomaki on 0459 954 035 media@coba.asn.au
The Customer Owned Banking Association is the industry body for mutual banks, credit unions and building societies. For almost 180 years our sector has put customers first, returning profits to more than 5 million Australians who put their trust in customer-owned banks.