What is a customer owned bank?

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. Here are two main differences you’ll find with a customer owned bank:

1. Customer owned banks do not have shareholders. They are owned by their members. That means customer owned banks answer to our customers, not shareholders. When somebody opens an account with Heritage they become a member and part-owner, with an equal stake in the organisation.
2. Other banks may be listed on the ASX and owned by shareholders. One of their top priorities is to maximise the dividends they pay to shareholders. Because customer owned banks don’t have shareholders, we don’t have to pay out dividends. We can then 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