KPMG's Mutuals Industry Review 2018 highlights that Australia's mutual banks, building societies and credit unions (the 'Mutuals') performed well in 2018 despite a sustained low interest rate environment, an increasingly competitive market, heightened regulatory focus and an industry being reshaped by a new wave of technological innovation and evolving customer preferences.
The industry is also facing unprecedented political, regulatory and media scrutiny and ultimately, challenges in arresting a decline in trust. However, it’s not just in Australia where trust in financial institutions has diminished – this is also occurring globally. APRA explains 'trust is the currency of banks'. However, this currency cannot be bought, sold or demanded, rather it is built over many years. And as we have observed, it can also be lost quickly. This report explores a number of similar considerations and aims to provide insight into what is on a Mutual’s mind when it comes to 'maintaining trust in turbulent times'.