Banking Code of Practice doesn’t need extending: COBA

COBA/Banking-Code-of-Practice/code-of-practice/

10 September 2018
| By Anastasia Santoreneos |
image
image image
expand image

The Customer Owned Banking Association (COBA) has hit out against the Australian Banking Association’s (ABA’s) suggestion to extend the Customer Owned Banking Code of Practice (COBCOP) to mutual banks and credit unions that aren’t ABA members, saying that that Code already provides consumers with enough protection.

COBA CEO, Michael Lawrence, said it was “ironic” that major banks were lecturing credit unions and building societies about consumer protection, and customer-owned banking institutions objected to any suggestion that their record of putting customers first was somehow inferior to the track record of the major banks.

“The success of our model is demonstrated by our sector’s consistently superior performance on measures of trust and loyalty,” said Lawrence. “The customer-owned banking sector’s performance on the Roy Morgan Research Net Promoter Score scale is in a completely different ballpark from the major banks.”

Lawrence highlighted that the major banks were at minus six as compared to the customer-owned sector, which sat at plus 26, and while the customer-owned sector was profit-making, it wasn’t profit-maximising.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

So we are now underwriting criminal scams?...

5 months 1 week ago

Glad to see the back of you Steve. You made financial more expensive, not more affordable as you claim, and presided ...

5 months 2 weeks ago

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

7 months 2 weeks ago

The RBA has handed down its much-anticipated rate decision, following widespread expectations of a close call....

1 week ago

The FSCP has issued a written direction to an adviser who charged clients “extraordinary fees” for inappropriate and conflicted advice, as well as encouraged them to swit...

3 weeks 1 day ago

ASIC has confirmed the industry funding levy for the 2024–25 financial year, and how much licensees can expect to pay....

1 week 5 days ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
5