Banking on local support

CUSTOMER-owned banks in Australia provide greater support to local communities beyond their size, and contribute significantly to the national economy according to a new report.

The KPMG report commissioned by the Customer Owned Banking Association found that the 61 customer-owned banks in Australia represent 70% of the Authorised Deposit-taking Institutions (ADIs) in the country, and have five million customers.

Despite their relatively small share of market assets, which amounts to $158.8 billion compared to $4.37 trillion for major banks, the contribution of customer-owned banks is proportionally greater.

The report also states that customerowned banks are considered the primary financial institution by over 10% of the adult population, and they make up 5.6% of mortgage lending, well above their 3.5% share of overall market assets.

Additionally, the report found that customer-owned banks actively contribute in a disproportionate manner to sector-based and geographic communities through generous donations to charitable organisations and community sponsorships.

The findings of the report were welcomed by the Minister for Regional

Development, Local Government and Territories, Kristy McBain, who said that the report recognises the strong investment of customer-owned banking institutions in regional Australia.

Despite the shift to digital banking, customer-owned banks have maintained a strong branch network and continue to hire more Australians to support their members.

With 720 branches throughout Australia, the sector operates 18% of total bank branches and more than one in five branches in regional areas, compared to the sector holding 3.5% of total bank assets.

Employment in the sector grew by 4.4% between FY2021 and FY2022, with 11,200 working at a customer-owned bank at the end of the most recent financial year and earning a combined $1.24 billion in wages, the report found.

The report also found that customer ownership translates into better service and pricing for customers, including an implicit significant lending rate subsidy to members. KPMG estimates this subsidy equates to a 0.3% discount to the market interest rate – or more than $1,500 in interest annually on a $500,000 mortgage.

COBA commissioned KPMG to measure the contribution of customer-owned banks to their local communities.

with Spencer Shaw Chamber President

Maleny Commerce Update February 2023

WHAT a great meeting we had for our second networking breakfast for the year held on the 14th of March at Tranquil Park, with the theme for this month being Events happening in Maleny and surrounds for 2023. You may not know this, but Maleny is an event hotspot, leading the way for the Sunshine Coast, if not Queensland, some say Australia, perhaps the Earth, maybe even the Universe ... too far?

Its great to see so many locally driven and organised events coming up this year, and some of the events discussed at this meeting included, but not limited too: Maleny Eco Creative Festival 31st March - 2nd April; Maleny Wood Expo 29th April – 1st May; Arts Connect Open Studios 20-28th May; Maleny Show 2-3rd June; Knitfest 1-3rd July; Qld Music Trails – Meadow Lark 5th August; The Rangebow Festival 10-13th August; Maleny Arts Alive (to be confirmed) and last but not least Maleny Commerce’s own Sustainable Futures Expo 9th September.

After the last few years of lockdowns and restrictions, Maleny Commerce looks forward to continuing hosting meetings like this to help our community gather, grow, and make the most of these events.

Cr Winston Johnson updated us on Sunshine Coast Council business, including the very exciting Eco-park that will extend the rainforest of Mary Cairncross considerably over the next decade or two. Sam Price also joined us from Maleny Apex to remind us what a great asset the Maleny Apex Business Directory is.

Before I sign off, just a reminder on our new team for 2023 (pictured below) President – Spencer Shaw, Vice President –Adrian Anderson, Treasurer – Doug Evans, Secretary – Nicole Hilton and Committee Members - Karen Shaw, Fiona Emberton, Kim Herringe and Melissa Chaddock.

Next month Our April event we will be a combined event with Montville Chamber on Wednesday the 12th of April at 5:30pm at Spicers Clovelly.

www.malenycommerce.org.au