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Jessica Darnbrough
Australia’s credit unions will never rival the big four banks, KPMG’s national partner in charge financial services Michelle Hinchliffe has claimed.
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Speaking to The Adviser, Ms Hinchliffe said the nation’s mutual sector simply does not have the size nor the funding needed to rival the majors.
“In order to expand their business to the size needed to take on the big banks, they need to be able to source the necessary quality and quantity of funds at the right price, and their profile simply does not allow them to do that,” she said.
“They do not have access to the wholesale markets. In addition, there is a finite amount of retail deposits available and that isn’t even sufficient to fund the majors let alone the credit unions to a point where they can go head to head with the major players.”
Ms Hinchliffe said no one particular entity could ever successfully compete against the big banks.
Instead, she said all of the banking institutions would need to rally together if they want to be a force to be reckoned with.
“All of the regionals, mutuals and non-adis would need to operate together within the one space if they were to ever challenge the majors.”
