Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
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 consultation has opened on extending BEAR obligations to all APRA-regulated entities, including insurers and superannuation entities, und...

The non-major has announced the appointment of a new CIO, just a day after appointing a new chair. ...

The non-major bank has appointed a new chief executive officer of HSBC Bank Australia Ltd, taking over from interim chief executive officer ...

FROM THE WEB
podcast

LATEST PODCAST: New government loans and grants for SMEs

Do you think Australia will move to quantitative easing this year?

Website Notifications

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