There are so many reasons why you should choose a credit union over a publicly-listed bank.
The most important reason for choosing a credit union is they are customer owned, meaning they put their customers first.
What does that mean? Simply, the mutual structure means that credit unions are not publicly-listed companies and so, unlike the publicly-listed banks, don’t have the pressure to maximise profits to pay external shareholders.
Credit unions exist for their members: being customer owned organisations, they are fully owned by their members.
Credit unions are regulated in exactly the same way as publicly-listed banks, because they are all Authorised Deposit-taking Institutions (ADIs). This means all credit unions, mutual banks, building societies and banks are regulated in the same way and meet the same strict, legally-enforceable standards, under the Banking Act and strict oversight by the Australian Prudential Regulation Authority (APRA). APRA’s strict rules on safety and capital continue to apply to all banks, building societies and credit unions to the same high standards.
Equally credit unions, mutual banks, building societies and banks have the Government guarantee on deposits – so your money is backed by the Australian Government.
Deposits of up to $250,000 with credit unions, building societies and mutual banks are covered by the permanent Government guarantee.
If you’re a member of a customer owned banking institution, you become an owner of that organisation.
Our customers are our owners, so we focus on what’s best for them – not share price movements. As customer owned institutions, we are not under pressure to take risks to maximise record returns for shareholders. We put your interests first.
Credit Unions due to their size are able to provide more specialised services tailored to the needs of their members, as well as a more personalised service while being committed to helping members improve their financial situation.
Credit unions are committed to social responsibility, environmental sustainability, and financial literacy.
Credit unions are prudent and responsible lenders who provide ethical banking – they do not write loans that can’t be paid back or will over-stretch their members.
Credit Unions already work with members with financial difficulties with a range of support measures as outlined in the Government’s recent hardship provisions. Just as importantly, credit unions make sure that they lend responsibly in the first place.
Credit Unions are wholly committed to ethical and responsible lending practices that support both their members and their members’ communities.
- Not for Profit Groups/Organisations