Australians turning to credit unions
17 November 2008
Australians turning to credit unions as a change for the better from the big banks
SUPPORT for alternatives to the major banks has continued to find momentum with credit unions and mutual building societies snagging the largest share of the Australian household deposit market over any bank except the Commonwealth Bank.
Australia’s largest credit union CUA (Credit Union Australia) has experienced consistent growth over the 60 plus years since its inception but Acting Chief Executive Officer Mr Rob Nicholls said the scope for further growth was immense.
“The big banks still dominate but the growth our sector has experienced in the past decade is proof that people are starting to get the message that there are better, more customer-focused alternatives to the traditional banks,” he said.
“In this current environment credit unions are a safe choice. We have no exposure to the sub-prime lending issue and more than 80 percent of lending funds come from retail deposits rather than the volatile wholesale market.”
Mr Nicholls said there were a number of key benefits people needed to be aware of to make a conscious decision about the best financial institution available to them.
“CUA is 100% Australian owned by its members and anyone is welcome to join.
“All profits are reinvested back into the organisation to create better, more competitive products and services.
“With no shareholders demanding profits, we are not under any obligation to take risks to maximise returns and the interests of our members are always put first.
“CUA consistently outperforms the big banks in independent customer satisfaction research because our customers are our owners and we are working for them.”
Mr Nicholls confirmed credit union deposits were guaranteed by the Federal Government.
“Credit unions, mutual building societies and banks are all regulated in exactly the same way and to the same strict, legally enforceable standards by the Australian Prudential Regulation Authority (APRA) under the Commonwealth Banking Act (1959).
“Credit unions offer the same if not more competitive services and products to the market than the big banks. In this current turbulent economic environment people need to be aware of the choices they have and it’s our job to ensure they are informed correctly.
“There’s no better time for Australians to make the switch to the credit union difference. Banks or CUA? The choice is clear.”
