Credit Unions targeting young Australians trading on reports of better rates than banks

Thursday November 26, 2009

Australian banks, credit unions and building societies are launching new campaigns to target younger Australians through a variety of means including social networking forums, lower rates and high savings options. Even the online payments program, PayPal, has joined the industry with the releasing its software base code to all web develops, designers and users opening the chance for people to create their own ideal online payment system.

Credit unions are particularly are aiming to improve their number of young customers with the banks now dominating the market.

Grant Devine, Chief executive officer of the Queensland Police Credit Union, stated in The Sheet that attracting younger customers is the main priority for the credit union with changes to some of their central accounts the first strategy including changes to deposit interest rates.

"We have basically maintained our membership at around the same level as a year ago, but these rate moves and our new sharp term deposit rates are about expanding membership.

"We have about half of the police force as members and a lot of emergency services workers but we are really looking to expand further and get more public servants signed up.

"We think our rates are a lot more attractive than the big four - we have had some fairly good results and we are turning that back into better pricing for members." Mr Devine stated.

This appears to be a common trend across the Australian banks and financial services industry with many banks now introducing new measures and accounts attractive to a younger banking customer. Use of popular social networking forums and online banking has also come to the forefront in many banks strategies.

Credit unions are targeting younger banks customers on the back of recent figures that claim that Australians banks customers could have saved around $3.6 billion if they had transferred their various banks accounts to credit unions or building societies. What's more, recent customer satisfaction levels as reported by Roy Morgan Research, Australia's largest independent research company, showed that building societies and credit unions were superior to the big four banks reporting results of 87.9 per cent and 86 per cent customer satisfaction rate respectively.

"The evidence stacks up, you get a better deal with a credit unions or mutual building society," said Louise Petschler, CEO of the mutual industry body Abacus.

"Millions of Australians already benefit from the service, rates and member-focus offered by credit unions and building societies."

"As mutuals, are profits go back to members - not to external shareholders - and while we meet the same high prudential standards as banks, we do it while putting members first."

"With many people worried about the dominance of big banks, it's a great time to make the switch to a member-owned and member-focused credit union or building society."

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