Australian Unity will seek to capitalise on ongoing consumer discomfort with the profits of the major banks to boost subsidiary Big Sky Building Society’s penetration rate in retail banking.
According to David Bryant, the company’s group executive of investments and chief investment officer, customers don’t feel they can go and talk to their bank in times of difficulty, while growing bank profits were making them uncomfortable.
He said Australian Unity would use that sentiment to boost Big Sky’s business.
"For consumers, there is a point at which they don’t feel comfortable with that degree of profitability, and we can take advantage of that," he said.
Because the mutual banking industry wasn’t simply about profits, it would appeal to a younger customer base that was more focused on values, Bryant said.
However, it was a challenge to communicate the advantages of a credit union over the big four banks, Bryant said.
"Making customers aware of what we are, and what we are not, is a fundamental challenge in the communication space," he said.
Mutual banks needed to make customers understand that they didn’t exist for shareholders, he added.
Big Sky chief executive Tony Ryan said there was a need for an alternative to the big banks, but it was difficult breaking through consumers’ apathy.
Big Sky would use Australian Unity to develop its customer base throughout the country, Ryan said.
