Why your money is secure with a customer-owned bank
With financial security a growing concern, over 5.4 million Australians trust customer-owned banks.
Credit unions, mutuals banks and building societies prioritise member security, going beyond standard protections to ensure your hard-earned money remains safe.
The following three mechanisms illustrate how customer-owned banks provide peace of mind banking.
Government guarantee
At the core of keeping your money safe is the Australian Government's Financial Claims Scheme (FCS), which provides protection to deposit-holders with all Australian incorporated banks, building societies and credit unions (known as authorised deposit-taking institutions or ADIs) in the unlikely event that one of these financial institutions fails.
The FCS is a government-backed safety net for deposits of up to $250,000 per account holder per ADI.
Strict regulatory oversight
Furthermore, customer-owned banks adhere to the same rigorous regulations as major banks. Government regulators, including APRA and ASIC, hold customer-owned banks to the same high standards as major banks.
The sector also adheres to the Customer-Owned Banking Association's Code of Practice, a commitment to principles designed to safeguard your financial well-being. The Code establishes higher standards than the law requires and reflects the customer-owned banking sector’s commitment to serving the interests of its customers.
Industry-wide anti-scam initiatives
Customer-owned banks are dedicated to protecting their customers from scams and fraud.
Demonstrating a proactive approach to combating scams, COBA and the Australian Banking Association (ABA) launched the Scam-Safe Accord in November 2023. This initiative outlined a comprehensive strategy to disrupt, detect, and respond to scams.
A recent report from the National Anti-Scam Centre (NASC) shows scam losses declined in Australia for a second consecutive year, with a 25.9% decrease from 2023. Australia is the only country in the world where scam losses are declining.
