Mutual banks competing hard in loans and deposits

02/08/2012

Competition is more intense than ever in home loans and savings, as some of the larger credit unions and building societies take the fight right up to their biggest rivals by adding the word “bank” to their name.

Not yet a year old, these new “mutual banks” are making a good showing in league tables for the financial products offering the best rates, as well as in rankings for customer satisfaction, especially when compared with the Big Four banks.

As deposit-taking institutions, all credit unions, building societies and banks must meet the same regulatory standards and are covered by the same government guarantee.

The federal government announced last year that credit unions and building societies that met certain capital requirements would be allowed to become banks. There are now six mutual banks.

Source: The Age