First mutual bank open for business

Mecu Ltd, a mutual financial institution, has become Australia's first mutual bank after winning approval from the prudential regulator and changed its trading name to bankmecu.

Mecu will focus on building its brand and attracting younger customers to its 135,000 customer base, Mr Walsh said. "We have an ageing customer base and it's important that we look at opportunities with a younger demographic and that's really about the long-term sustainability of the business," he said.

Mecu has $2.7 billion in assets, a $287 million capital base, a tier one capital ratio of 18 per cent, and a $2 billion loan book of which over 90 per cent is residential mortgages.

Home loan borrower numbers reached 11,000 during the year, with 24,000 more borrowers holding other loans.

Source: Sydney Morning Herald