Customer-owned vs Fat Cats

A Cat's tale on what is a customer-owned bank

Haven’t you heard? Unlike the big banks, Heritage is owned by its customers, not by shareholding investors. That means Heritage’s main focus is on improving the financial wellbeing of its customers and communities.  Heritage uses its profits to help deliver great rates, great services and great products to its customers  - not to pay big dividends to “Fat Cat” investors. I think that’s rather  offensive, as in my view  cats, regardless of   size should always be put first!

I thought I’d share my comments on the reasons that Heritage (and apparently their customers) are so proud of their people first, customer-owned model (don’t make me choke on a hair ball! As if people actually matter...)

Customer-owned banks, such as Heritage, operate on a different business model to other banks. The customer-owned model focuses on delivering great value to customers, not on profits for shareholders. Apparently this means that:

  1. Customer-owned banks are not affected by the bank levy that the Federal Government introduced in 2017.  For Heritage, this means there is no impact on their ability to put value back into their customers’ pockets, by offering better rates and fees, and by giving back to the communities they are a part of.
  2. Customer-owned banks do not have shareholders. They are owned by their members. That means customer-owned banks answer to customers, not shareholders. When somebody opens an account with Heritage they become a member and part-owner, with an equal stake in the organisation.
  3. Australia’s four big banks, and other financial institutions, are listed on the ASX and owned by shareholding investors. One of their top priorities is to maximise profit, so they can also maximise the dividends they pay to shareholders. Because customer-owned banks don’t have shareholders, they don’t have to pay out dividends. Rather, they can retain the profit they make, and leverage this to benefit customers in many ways. These include:
  • Fair pricing
  • Competitive fees and charges
  • Flexible products
  • More staff to give a higher level of service

My humans do go on and ON about these benefits that Heritage delivers back to customers. What-ever!

But I guess you could find out how other humans switch to Heritage

But I guess you could find out how other humans switch to Heritage
Switching behaviour in Australia
To shed some light on the topic, we teamed up with the University of Technology Sydney to carry out an Australia-wide study on switching.
Switch To Heritage
All the information you need to easily switch your accounts to Heritage Bank