Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

Royal commission shouldn’t derail competition reform: COBA

The Customer Owned Banking Association has called for the implementation of pro-competitive reform in retail banking to continue during the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

COBA CEO Michael Lawrence said that the royal commission will rightly focus on misconduct and should look at the areas of greatest consumer concern, but there is no need to interrupt the implementation of pro-competitive reform.

“The long-term solution to concerns about misconduct in the banking market is action to promote sustainable competition,” Mr Lawrence said.

“Our business model is fundamentally different to the listed banks because our customers are our owners and therefore the customer comes first. This is reflected in our sector’s market-leading customer satisfaction ratings.”

The mutual sector has four million customers and $110 billion in total assets, Mr Lawrence said. He believes that customer-owned banks bring “unmatched customer focus” to the retail banking market.

Advertisement
Advertisement

The CEO said: “Our sector will be able to compete even more effectively with [the] implementation of the Hammond Review reforms that have been endorsed by the government.

“We particularly welcome measures to improve our sector’s capacity to raise capital. Greater capacity for customer-owned banking institutions to raise capital will increase their potential to grow, take opportunities and invest in technology.”

[Related: Mutuals lend $83.4bn in 2017]

Royal commission shouldn’t derail competition reform: COBA
mortgagebusiness

Latest News

The Mortgage Business Uncut podcast is your weekly analysis of the biggest themes shaping the Australian mortgages market. ...

Following Saturday’s (21 May) federal election, here’s a recap of the housing policies we can expect to see this year. ...

The bank’s latest data suggests that mortgage fees have decreased during the last quarter, while surging over the past 12 months. ...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

What is the maximum proportion of income borrowers should use to service a mortgage?

Website Notifications

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