Credit Union Australia believes its products offer a viable alternative to the majors following a substantial increase in new lending.
After posting a 16.7 per cent surge in mortgage settlements over the 12 months to June 30, CUA chief executive Chris Whitehead said the investments made in its products over the past three years mean it is now well positioned to be considered as a highly viable alternative to the second-tier banks and, increasingly, to the big four.
Mr Whitehead said the group’s lending growth was driven by its investment in product innovation and various distribution channels including a new online banking system and branch network.
“Our Rate Breaker Package continued to deliver value through a one per cent discount below the average of the advertised standard variable home loan rates of the four major banks,” he said.
Mr Whitehead said CUA’s customer-owned model is a significant point of difference and means it will always make rate decisions that are in the best interests of its customers, not necessarily its bottom line.
“A particular high point for CUA during the year was the launching of our new brand, ‘Life rich banking’ which underpins our commitment to helping customers enrich their lives,” he said.
“The growth in our consolidated assets to a record $10.3 billion is an important demonstration of our strong and secure financial position.”
The group managed to grow its loan portfolio by 4.9 per cent to $9 billion while net profit after tax was $49.6 million for the full financial year.