Australian Unity looks to Big Sky
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.
Recommended for you
Licensing regulation should prioritise consumer outcomes over institutional convenience, according to Assured Support, and the compliance firm has suggested an alternative framework to the “licensed and self-licensed” model.
The chair of the Platinum Capital listed investment company admits the vehicle “is at a crossroads” in its 31-year history, with both L1 Capital and Wilson Asset Management bidding to take over its investment management.
AMP has settled on two court proceedings: one class action which affected superannuation members and a second regarding insurer policies.
With a large group of advisers expecting to exit before the 2026 education deadline, an industry expert shares how these practices can best prepare themselves for sale to compete in a “buyer’s market”.
