Alternative to big banks already in Toowoomba
FORGET the hype about digital banks – the mutual sector already provides a perfect alternative to the big banks, Heritage Bank CEO Peter Lock says.
Mr Lock said discussion about how the Royal Commission would impact on the banking sector had generated a lot of hype about people turning to neobanks or digital banks, rather than the big banks.
But Mr Lock said neobanks could turn out to be “wolves in sheep’s clothing”, as many were being founded by big investors whose appetite for profit was just as strong as the big banks.
“Forget the hype about neobanks – mutuals are the tried and tested alternative,” he said.
“Unlike many neobanks, mutuals aren’t owned by big investors looking to make a profit. If you’re turning to them to escape the profit-maximisation excesses of the big banks, then you should think again.
“There’s nothing that digital banks and neobanks offer that customer-owned institutions such as Heritage Bank don’t already offer to people frustrated by the listed banks.
“Customer-owned banks offer market-leading technology, along with great service, highly competitive pricing and a commitment to the best interests of the customers.”