Heritage joins national campaign to promote advantages of banking with a building society

Heritage Building Society has joined more than 80 credit unions and building societies around Australia in the latest phase of a promotional campaign to alert people to the benefits of banking with a mutual.

The “It All Comes Back to You” campaign lets people know why mutuals – building societies and credit unions – exist to deliver a better deal to members rather than shareholders.

Heritage is joining the next phase of the campaign, which starts this week. This phase will involve a fresh burst of TV advertising around Australia.

That announcement coincides with the release of new figures showing growth rates in the mutual sector outstripping those of banks.

The Australian Prudential Regulation Authority last week released figures showing the mutual sector grew by 10.7 per cent in 2010, with total assets now above $77 billion. This compares with growth of 4.4 per cent in resident assets for banks over the same period.

It also follows the December ABS results which showed credit unions and building societies writing almost 11% of new owner occupied home loans in Australia – a jump from 6.5% two years ago.

Heritage CEO John Minz said the profile of the mutual sector had never been higher, helped by the Federal Government’s ongoing push to create greater competition in banking.

“The Treasurer has clearly announced a desire for mutuals to become a ‘fifth pillar’ in the Australian banking sector, and his reform package contains a number of measures to help achieve that,” Mr Minz said.

“More and more people are starting to realise that mutuals such as Heritage offer a real alternative to the big banks.

“Because we are owned by our members, not by shareholders, we focus on delivering value back to our members through better interest rates, fairer fees and premium service. At the same time, we must also meet the same strict regulatory requirements as the banks, so we are just as safe and secure.”

Mr Minz urged people to visit the “It All Comes Back to You” website to find out more about the advantages of banking with a mutual.

“The bottom line is that mutuals exist to give the best deal they can for members, not to maximise dividends for shareholders. As the slogan says, when you are a member of a mutual, the benefits all come back to you,” he said.

The ”It All Comes Back to You” website is at www.comesbacktoyou.com.au.

* Based on a $150,000 loan over 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.