The mutual sector continues to set itself apart from the major and mainstream lenders, with borrowers rating the former higher than the latter in terms of customer service.
A recent report from Roy Morgan showed that 94% of building societies and 90.9% of credit unions were rated highly by customers in terms of satisfaction over the first six months of the year.
Overall, the mutual sector held 91.6% in customer satisfaction over the period.
In comparison, major banks continued to record a growing dissatisfaction with their services, with a customer satisfaction rating of just 77.4%.
Of all mutuals sector, the highest-rated lenders include Teachers Mutual Bank (98%), Heritage Bank (94.8%), Beyond Bank Australia (92.9%), and Greater Bank (91.4%).
Customer Owned Banking Association (COBA) CEO Michael Lawrence said the performance of the mutual banking sector shows how it was able to uphold community commitment, competitive rates, and personalised service more than the major banks.
“These results show that customer-owned banks are well ahead of the pack when it comes to customer satisfaction — they deliver leading products, competitive rates, and services with a personal touch – this is why the significant majority of more than five million Australians who bank with a member-owned institution are beyond happy with their choice,” he said.
Mr Lawrence said the principle of putting people before profits and having customers at the core is also crucial in the high satisfaction rate of borrowers towards the sector.
“The customer-owned model is also unique because our members are part of the fabric of local communities across the country, many rural and regional based, and they continue to support these communities through grants to local charities, sporting clubs, and community organisations,” he said.
Non-majors dominate new loans, refinances
Non-major lenders, which include the mutual sector, maintained their position ahead of the major banks in terms of wins over the June 2022 quarter and the overall financial year 2022.
According to PEXA’s Mortgage Insights Report, notable upswing for new loans to non-majors were recorded in Victoria.
Meanwhile, non-majors still dominated the major banks in terms of new loan wins in Queensland.
However, major banks overtook non-majors in New South Wales over the June quarter.
Non-majors were able to retain their standing in the refinancing space, staying ahead of majors in terms of wins for refinances throughout the financial year in New South Wales, Queensland, and Victoria.
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Photo by towfiqu barbhuiya on Canva.
Collections: Mortgage News
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