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
A financial advice firm has been penalised $11 million in the Federal Court for providing ‘cookie cutter advice’ to its clients and breaching conflicted remuneration rules.
Insignia Financial has experienced total quarterly net outflows of $1.8 billion as a result of client rebalancing, while its multi-asset flows halved from the prior quarter.
Prime Financial is looking to shed its “sleeping giant” reputation with larger M&A transactions going forward, having agreed to acquire research firm Lincoln Indicators.
An affiliate of Pinnacle Investment Management has expanded its reach with a London office as the fund manager seeks to grow its overseas distribution into the UK and Europe.
