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.
The report, based on Roy Morgan’s ongoing Risk Monitor surveying approximately 25,000 Australians[1] each year, marks customer-owned banking’s second consecutive recognition as most trusted banking sector and shows a further improvement in their collective Net Trust Score[2] since the previous report in May 2023.
“Trust is something that is earned, and customer-owned banks’ people-first approach translates to competitive rates, innovative products, superior services, and a strong commitment to local communities, which explains why Australians continue to place their trust in mutual banks,” Customer Owned Banking Association (COBA) CEO Michael Lawrence explained.
“Customer-owned banks are built differently. We’re owned by our customers, which means our purpose is to create long-term value for them and their communities. Unlike listed banks, financial performance is not our purpose – it enables our purpose,” he added.
The improved score for the mutual sector contrasts starkly with the broader banking industry. Since May 2023, distrust has worsened with 3.2 million (14.2%) of Australians aged 14 and over now expressing distrust towards either specific banks or the overall banking sector in general.
The banking sector as a whole ranked 24th out of 27 industries for net trust, only surpassing telecommunications, supermarkets, and social media companies. In contrast, customer-owned banks ranked 7th on the scale.
“Trust grows when customers see that your intentions are genuine – and that you follow through. At People First Bank, our purpose-driven model means we’re not here to maximise profit, but to do right by our customers and communities,” People First Bank Chief Customer Officer Maria-Ann Camilleri said.
“The customer-owned banking model demonstrates how financial institutions can structurally embed customer benefit alongside financial sustainability and customers financial wellbeing,” Great Southern Bank Deputy CEO Megan Keleher said.
The report also found Australians define trust using terms like ‘reliable’, ‘good service’, and ‘honest’, but describe distrust with expressions like ‘greedy’, ’profit-driven’, and ‘unethical’.
“Beyond Bank, now one of Australia’s largest customer-owned banks, was founded more than 60 years ago by people looking for a way to help others and many decades later, we remain mindful of this commitment to our customers. It guides us in all of our decision-making to ensure that everything we do is in the best interests of our customers because they are our owners,” Beyond Bank CEO David Marshall said.
“Because we’re owned by our customers, not investors, we’re able to focus on their needs and creating positive impact on their behalf and trust plays a big part in this,” Bank Australia Managing Director Damien Walsh said.
“Trust isn’t something you can buy – it’s earned, through actions that consistently put people first. At NGM Group, through our Greater Bank and Newcastle Permanent brands, being customer-owned shapes everything we do – from how we design products, to how we support customers in tough times, to how we show up in our local communities,” NGM Group Chief Distribution Officer Paul Juergens said.
Customer-owned banks, which includes mutual banks, credit unions and building societies, collectively serve over 5.4 million Australians and have been providing purpose-led banking for nearly 180 years. To find a customer-owned bank that aligns with your needs and values, head to findabank.com.au.
About the Roy Morgan Risk Monitor Methodology
Since April 2018, the Roy Morgan Risk Monitor has been asking approximately 2,000 Australians aged 14+ every month (more than 25,000 per year) which companies they TRUST and which companies they DISTRUST. Roy Morgan also asks Australians WHY they trust or distrust their nominated brands – recording exactly what respondents say in their own words.
The research is open-ended and unprompted. That means for people who nominate a brand, it is so top-of-mind that they put it ahead of all other brands swirling around in their consciousness. Importantly, both customers and non-customers are asked to nominate brands.
For further information or to arrange interviews, please contact media@coba.asn.au.
The Customer Owned Banking Association is the industry body for mutual banks and credit unions. 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
[1] Reporting period is 12 months to January 2025. The customer-owned banking sector outperformed even the highest-rated investor-owned bank, with a collective Net Trust Score higher than any individual bank.
[2] The customer-owned banking sector recorded far more trust than distrust, resulting in an overall Net Trust Score of 1.00. In contrast, the entire banking industry recorded a Distrust Score of -14.26 and a Net Distrust Score of -3.97. This places the overall banking sector deeply in Net Distrust territory.