Oliver Wyman’s report on Tier 3 Banking examined the mutual industry in Australia and offered a number of potential future scenarios for the sector. The report assessed the performance of mutuals compared to listed banks, what the key differentiators were and also took a look at the UK mutual sector’s success in transforming its business.
Australia’s mutual industry built its reputation as the friendly banking alternative that provided a better deal for its members. With the crisis and slow decline of public trust in major financial institutions, one would expect mutuals to play an increasing role and gain market share. However, the mutuals’ share of assets have declined over time and members are not necessary getting a better deal.