Three factors at play, peak body says
Customer-owned banks continue to outperform the majors on customer satisfaction – a key point of difference for the sector, the Customer Owned Banking Association says.
COBA points to the Roy Morgan Consumer Banking June 2022 Australia report, which measured satisfaction among customers who used a financial institution as their primary institution over the previous six months.
Report findings showed that the compared to major banks, the mutual sector as a whole held the highest customer satisfaction as of June 2022, at 91.6% overall. The four majors scored a collective 77.4% in customer satisfaction.
Breaking down the figures for building societies, customer satisfaction was 94%, while for credit unions it was 90.9%.
Among the customer-owned banks with the most satisfied customers were Teachers Mutual Bank (98%), Heritage Bank (94.8%), Beyond Bank (92.9%) and Greater Bank (91.4%).
COBA CEO Michael Lawrence (pictured above left) said community commitment, competitive rates, and personalised service were the three factors driving mutual bank customer satisfaction.
“Enshrined within the DNA of customer-owned banks is the commitment to give back to the communities they serve, putting people before profits and having customers at their core,” Lawrence said.
The report results showed that customer-owned banks are well ahead of the pack on customer satisfaction, he said.
“They deliver leading products, competitive rates, and services with a personal touch – this is why the significant majority of more than five million Australians who bank with a member-owned institution are beyond happy with their choice,” Lawrence said.
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Lawrence said the customer-owned model means that members are part of the fabric of local communities across the country, many of which are rural and regional based. Mutuals in these areas continue to support their communities through grants to local charities, sporting clubs and community organisations, he said.
Teachers Mutual Bank Limited head of third party distribution Mark Middleton (pictured above centre) said as a mutual bank, it is committed to offering competitive home loan rates, and works with members to tailor a loan to their needs.
“Profit for purpose is our business model and we are 100% owned by our members,” Middleton said.
As certified B Corporation (‘B Corp’), Teacher’s Mutual Bank Limited meets the highest standards of verified social and environmental performance, public transparency and legal accountability to balance profit and purpose, he said.
“We believe banking with a bank that strives at all times to be a force for good is an important factor for our members’ satisfaction,” Middleton said.
Beyond Bank GM customer experience Nick May (pictured above right) said as a mutual bank, customers are the bank’s owners, meaning the bank’s ability to return value is “never conflicted”.
The bank measures customer satisfaction “in real-time every minute of every day,” he said.
“With our purpose, strategy and values putting customers first, our number one priority is ensuring the financial wellbeing of our customers,” May said.
“Returning value to our customers through products, service and a variety of value elements is what we strive to do each and every day.”
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Lawrence acknowledged recent achievements across the customer-owned banking sector.
Beyond Bank was named Best Bank in Australia in the Forbes 2022 World’s Best Banks list, followed by Heritage Bank, Greater Bank and Newcastle Permanent.
Bank First was named Bank of the Year in the Roy Morgan annual 2021 Customer Satisfaction Awards, and Newcastle Permanent was named Building Society/Credit Union of the Year.
IMB Bank was awarded the most customer-satisfied bank in the Canstar’s Most Satisfied Customers Awards 2022, leading both the overall bank and customer-owned bank categories.
“The past six months has seen some big changes in the banking sector, and to see our COBA members so strongly serve their member base demonstrates the value these institutions have beyond dollar figures and rates,” Lawrence said.
