Tuesday, September 3rd, 2013
Leading credit union, Community CPS Australia, has said it is ready to unite with its mutual peers to create the ‘fifth pillar’ in the Australian banking system, in line with Treasurer Wayne Swan’s recent statement regarding banking competition.

Robert Keogh, CEO of Community CPS Australia, said credit unions and building societies are ideally placed to assume this role and offer real competition.

“It is time for a paradigm shift in Australian banking. Our country needs a fifth pillar and Community CPS Australia and the mutual sector is well placed to play a big role in this.”
said Mr Keogh.

“Credit unions and building societies are collectively the fifth largest in householder deposits in Australia and are regulated to the same standards as banks.

“They currently hold around $63 billion in assets, with all profits being reinvested back into the organisation to support products and services. This single focus and different profit objective makes them a smart choice for consumers.

“At the end of the day credit unions and building societies are not into big business. With more than 4.5 million members from all walks of life, their primary focus is supporting the financial needs of communities Australia-wide.

“The banks’ stronghold on the market grew during the Global Financial Crisis (GFC) due to misconceptions around the regulatory status of credit unions and building societies

“This dominance has continued and they currently hold around 87 per cent of the market, which is incredibly disproportionate.”

Mr Keogh’s comments coincide with Community CPS Australia’s announcement it will increase its home loan variable interest rate by 0.25 per cent in line with the RBA’s increase - effective immediately.

“It’s true that funding costs increase and are subsequently passed on to consumers through rate rises. However, our members are our shareholders – they share in our success and we aim to balance the business needs of the credit union with the member impact,” said Mr Keogh.

“This mutuality prevents the ‘conflict of interest’ between customers and stakeholders that can occur with other organisations.”

Credit Unions and building societies have a long history of delivering financial services and Community CPS has been serving communities across the country for more than fifty years.

“Community CPS Australia is deeply committed to strengthening communities through our Foundation activities and we continue to reinvest back into the business to continually improve services and products,” Mr Keogh said.

Contact Profile

Community CPS Australia

Community CPS Australia is one of the country’s leading credit unions. With more than 178,000 members, Community CPS employs 580 staff across branches in South Australia, the Australian Capital Territory and regional New South Wales, and operates as United Community in Western Australia, and as Companion Credit Union in the Hunter Valley. The credit union has $3.1 billion worth of assets under management.
Victoria Firth
P: -
W: www.beyondbank.com.au/personal-banking.html


credit union, credit unions, fifth pillar, interest rate rise, Community CPS, Robert Keogh



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