SMH gives Mutuals a great wrap
An article released by the Sydney Morning Herald online this week has praised Mutual ADIs (credit unions, building societies and mutual banks) saying some of the best deals on credit cards, term deposits and mortgages are available from Mutuals.
“In the key category of mortgages, RateCity says credit unions, building societies, mutuals and smaller banks have an average standard variable home loan rate of 6.77 per cent compared to an average rate of 7.34 per cent for the four big banks,” writes John Collett from SMH online.
In addition to praising Mutuals for consistently lower rates than competitors, the article also identified Mutuals as ahead of the big banks when it comes to customer service. The article referred to an external study conducted by Roy Morgan last year which showed that Mutuals scored almost 90 per cent in customer satisfaction in comparison to the big banks that all scored less than 80%.
The article went on to say that 4.5 million Australians are currently members of Mutuals and they have a strong presence in regional areas. “One of the biggest misconceptions about mutuals is that they are not as safe as banks. But the mutuals - like the banks - are authorised deposit-taking institutions (ADIs) and regulated by the Australian Prudential Regulation Authority in the same way. Deposits of up to $250,000 with ADIs are guaranteed by the federal government,” writes Collett.
Despite being superior in value and service it was also identified that Mutuals don’t have as much market traction in Australian cities because they can’t compete with the huge advertising budgets that the big banks have. “It doesn't help that the combined marketing budget of the whole mutual sector doesn't come anywhere near that of even one of the big banks,” writes Collett.
If you would like to know more about the benefits of Mutual ADIs contact us today, we would love to hear from you.
Click here to read the full Sydney Morning Herald article.