Australian Broker forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Mutual bank mystery: Why do happy customers take money elsewhere?

Notify me of new replies via email
Australian Broker | 15 Oct 2013, 08:00 AM Agree 0
Despite boasting higher customer satisfaction rates than the big four, the mutual banking sector is failing to hold on to its customers' dollars - but why?
  • David | 15 Oct 2013, 10:28 AM Agree 0
    Why do 'experts need to complicate the world? The simple wizdom of not putting all one eggs in one basket is a strong driver here. Mutuals are more often regarded as solid thrift organisations, so they get the 'rainy day' money. It is a quantum leap from that status to being a serious full service provider.
  • Judy West | 15 Oct 2013, 10:31 AM Agree 0
    Mutuals have never fully recovered from the run on their funds in the seventies. Customers absolutely LOVE the staff and really engage with them, but the nagging doubt remains that they may not be quite safe.
  • Justin | 16 Oct 2013, 08:28 AM Agree 0
    Judy West take your head out of the sand - mutuals are ADI's and thus subject to the financial claims scheme whereby deposits for individuals are protected up to $250k. Also regulated by APRA just like the big banks.
  • Judy West | 16 Oct 2013, 09:32 AM Agree 0
    Dear Justin-No-Name
    Read the question and drop the aggression. If the customer PERCEPTION is that their money may not be quite as safe as elsewhere, more work needs to be done by the Mutuals to correct that perception.
  • David | 16 Oct 2013, 11:15 AM Agree 0
    The small matter that most of the Mutuals that existed in the 1970's have morphed into Banks themselves & been swallowed bythe majors. That makes your comment about the runs almost irelevant. I think you'll find that the last financial instituton to run out of money was in fact a bank. Mutuals didn't become banks to cover off the perception that they were not safe - they became banks because it gave them more flexibility and an ability to raise capital from the issue of shares. But that fmove also made them vulnerable to take over. The simple fact is that there are less Mutuals now- by a very large margin.....
Post a reply