Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter
subscribe to our newsletter

Mutual banks ‘at a threshold’

The head of Australia’s second biggest credit union believes the industry has reached a pivotal point that will determine its future.

Mutuals are being sidelined in a market that continues to be dominated by the majors, who currently hold a competitive advantage over smaller lenders with capital requirements.

People’s Choice Credit Union chief executive Peter Evers admits the mutuals must become far more competitive in their value propositions but stressed an “equitable playing field” is necessary to do so.

Advertisement
Advertisement

“Competition is fantastic – it makes you think differently, it makes you more innovative and it allows you to understand the consumer,” Mr Evers said.

“That is all great for the end consumer looking for a loan or a deposit, but you need to have an equitable playing field to be fair,” he said. “And that is the key.

“It is not fair at the moment – it’s imbalanced. The majors have such a substantial advantage that, tied to their market power, they are just compressing what would otherwise be genuine competition.”

While the Murray Inquiry has acknowledged the funding disparity, the industry will have to wait until November when the FSI makes its final recommendations.

Mutual banks ‘at a threshold’
mortgagebusiness

Latest News

A major insurance provider has announced that it would restrict its offering of lender’s mortgage insurance in light of emerging risks ass...

Lenders will be allowed to extend their pre-approval period for borrowers using the First Home Loan Deposit Scheme given the coronavirus pan...

The federal government has announced several changes to the Takeovers Panel, which include the reappointment of an ANZ executive and the ap...

FROM THE WEB
podcast

LATEST PODCAST: Further relief for SMEs and borrowers

Do you expect COVID-19 to reduce or increase your business flows?

Why we’ll keep delivering for our communities in the face of COVID-19

alex

As Australia tries to keep pace with a rapidly changing business and social landscape in the wake of COVID-19, Momentum Media is leading the way delivering essential content to our communities, writes Alex Whitlock, director of Mortgage Business.

Read more

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.