What are customer owned banks?

‘Customer owned banks’ refers to credit unions, mutual banks and mutual building societies. All are fully owned by their customers and are not listed on the stock exchange.

In contrast, ‘traditional’ banks are owned by shareholders who receive dividends from the bank profits and are not necessarily customers of the bank.

Strong regulation

Credit unions, mutual banks and mutual building societies are regulated in the same way as banks and must meet the same standards. All are supervised by the Australian Prudential Regulation Authority. This authority promotes stability and confidence in Australia’s financial system.

All have the Government guarantee on deposits, so your money is backed by the Australian Government.

Size and strength

In Australia, customer owned banks:

  • hold $91.9 billion in assets
  • are the fifth largest holder of household deposits in Australia
  • serve more than 4 million customers.

Most customer owned banks offer a full range of personal banking services.

Find out more

Customer Owned Banking Association – how we are regulated

Customer Owned Banking Association – the customer owned difference at work

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