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 three main differences you’ll find with a customer-owned bank:

1. Customer-owned banks are not affected by the recent proposed bank levy announced by the federal government. For us, this means we can continue to put value back into our customers’pockets (by offering better rates and fees) and by giving back to the communities we 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 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.
3. 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