These banks now have more than $119bn in assets and over $101bn in deposits
Consumers are sending a clear message to the major banks saying if their interests do not come first, they will go elsewhere, says Customer Owned Banking Association (COBA) CEO Michael Lawrence.
Over the last 12 months, housing loans originating from the customer owned banking sector rose by 8% while those coming from major banks grew by only 2.6%, according to data released recently by the APRA.
Customer owned banking institutions now possess over $119bn in assets, an increase of 1.6% compared to the last quarter. Conversely, total assets of the big four dropped by .4% in the previous quarter.
Moreover, customer-owned banking institutions now have over $101bn in deposits; this demonstrates a 6.5% year-on-year growth in deposit.
“The latest figures from APRA paint a clear picture of a sector that is continuing to grow as more Australians begin considering who it they choose to bank with,” Lawrence said.
“Australians want banking institutions they can trust to put their interests first and to do the right thing by them. After the findings of the Financial Services Royal Commission, it’s no surprise people are looking beyond the ‘Big Four’.”
Lawrence added that “consumers can see through the spin of the major banks. They know a leopard can’t change its spots; that’s why they’re taking their banking elsewhere”.
He pointed out that it’s important that regulators create an environment where other institutions can challenge, grow and compete with the major banks because “with greater competition comes greater customer outcomes”.
