Home News Borrowers beginning to prefer customer-owned banks

Borrowers beginning to prefer customer-owned banks

Font size :

After the damage to the major banks’ reputation, consumers are looking elsewhere

New quarterly banking figures from Australian Prudential Regulation Authority (APRA) showed that customers have increased confidence in the customer-owned banking sector.

Indeed, customer-owned banking institutions have seen larger gains than both the major banks and the broader banking sector regarding their growth of housing loans and deposits – on both an annual and quarterly basis.

 “Given the damage to the reputation of the broader banking sector due to misconduct exposed by the Financial Services Royal Commission, customers are looking for banking institutions they can trust,” said Customer Owned Banking Association (COBA) CEO Michael Lawrence.

 “This shows that customers want an alternative that puts them first.”

Lawrence also underscored that the bank’s net profit would be used to further additional growth. “Our sector’s net profit after tax of $479 million is put back to work for our customers by underpinning the sector’s strength and future growth,” he said.

Moving forward, COBA emphasised the need for genuine customer choice in banking – a reference to the House of Representatives Economics Committee’s recent findings that the reputation of Australia’s banking and financial system has been tainted by cases of misconducts, specifically by the Big Four.

APRA’s June 2018 quarterly Authorised Deposit taking Institution (ADI) Performance Statistics also indicated that total assets in the customer owned banking sector have surpassed $113 billion, and more importantly, the sector’s total housing loans reached nearly $85 billion – collectively the fifth largest housing book in Australia.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

The Keys to Performing a Proper Property Inspection The Keys to Performing a Proper Property Inspection

A property inspection is key when you're serious about buying a home or property, but how do you know what to look for? Read more

Aussie home loan market gets shot in the arm from US private equity Aussie home loan market gets shot in the arm from US private equity Non-bank lenders' growth cushioned the impact of reduced credit on home prices ... Read more

Number of First Home Buyers hits six-year high Number of First Home Buyers hits six-year high FHBs are now entering the market in numbers not seen since 2012 ... Read more

What could cause a 20% home price decline in Sydney, Melbourne? What could cause a 20% home price decline in Sydney, Melbourne? The downtrend will impact dwelling construction and would likely reduce credit growth ... Read more

More mortgage news and articles

Sponsored Links

Sunday, Oct 21, 2018
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords