Community puzzle

How does being a mutual bank help us do more good for the community?

What is a mutual bank?

A mutual bank is a financial institution that’s 100% owned by its customers.

It’s one of many types of customer-owned banking institutions and does not serve sharemarket investors or pay dividends to ordinary shareholders. Profits are reinvested into the mutual bank and are only used to benefit customers and their communities.

Mutual banks may be considered not-for-profit organisations.

Customer-owned banking institutions: The ‘fifth pillar’

Collectively, customer-owned banking institutions make up the ‘fifth pillar’ of Australia’s banking sector and sit behind the four major banks in terms of total assets.

One in five Australians bank with a customer-owned banking institution.

How does being a mutual bank help us to do more good?

Beyond Bank Australia was created in August 2013 and is Australia’s newest mutual bank. Before becoming a bank we were called Community CPS Australia and we were one of Australia’s largest credit unions, having been originally established in 1958.

As a mutual bank, we believe in prosperity for the many, not just the few. This idea has always been part of our guiding ethos. We believe in fairness – not greed – and we use our profits to benefit our customers and communities.

By putting the interests of our customers first, we’re able to do more good for the community by offering many benefits and rewards, such as lower lending rates, higher investment rates, lower fees and charges, and community support.

Building strong communities is really at the heart of what we do, and we support not-for-profit community organisations, clubs and associations in a number of ways, including with a special transaction account for unlimited free withdrawals and deposits, no account-keeping fee and other benefits.

Our Community Reward Account is also a special way for individuals and businesses to give to not-for-profit organisations.

On our customer’s behalf, and at no cost to them, every year we give up to 1.5% of their customer’s average annual Community Reward Account balance to our customer’s charity or community organisation of choice. So the more our customer saves, the more we give back to the community. It’s a great incentive for our customers to save even harder.

We also offers discount packages to the employees and volunteers of not-for-profit organisations.

We strive to create meaningful relationships with community organisations. By supporting community organisations that our customers care about, we help to strengthen families and communities.

^Wayne, Deputy Chief Executive Officer