More Australians are turning to credit unions and building societies as alternatives to the big banks with data revealing the mutuals grew their market share 1 per cent over November.
According to the latest data from the Australian Bureau of Statistics, Australia’s mutual sector now boasts a market share of 10.2 per cent.
Louise Petschle chief executive officer of Abacus, the industry body for mutuals, said the trend indicates that mutual banking institutions are well placed to put competitive pressure on the major banks.
Data from the ABS also found that credit unions have hit their highest market share in twelve years, approving more than 3,500 new mortgages in October.
“Consumers are clearly seeing that credit unions and building societies are strong alternatives to the big banks and that switching is not hard as you think. The message is getting through to consumers that credit unions and building societies can offer a better value deal on their home loan,” Ms Petschler said.