Al­ter­na­tive to big banks al­ready in Toowoomba

The Chronicle - - Better Business -

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.”

Mad­sen Photo: Nev

LO­CAL BUSI­NESS: Rea­gan Wil­son, di­rec­tor of Wil­sons - The Fam­ily Lawyers, has opened the bou­tique prac­tice in the Longs Quar­ter.

Photo: CON­TRIB­UTED

VI­SION­ARY: Her­itage Bank CEO Peter Lock (pic­tured) says cus­tomer-owned banks op­er­ate on a dif­fer­ent model.

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