Overview of the impact report series

The Customer Owned Banking Association (COBA) publishes this impact report series to provide a comprehensive and annualised assessment of the customer-owned banking sector in Australia. The series serves as a formal mechanism for documenting the contributions of mutual banks, credit unions, and building societies across the national financial landscape. By focusing on the intersection of economic performance, social responsibility, and environmental stewardship, the series offers a longitudinal view of how these institutions differ from traditional investor-owned banks. The series, which includes the 2022 report, establishes a baseline for understanding the sector’s influence and its commitment to a purpose-driven banking model. It is designed to be updated annually to track changes and provide relevant information to the industry.

Economic and social contributions

A primary focus of the series is the evaluation of the sector’s impact on competition and community support. The reports provide structured, factual overviews of how customer-owned banks operate to foster a more diverse and competitive banking environment in Australia. By prioritising member interests over external shareholder returns, these institutions are shown to play a distinct role in the broader economy. The social impact component of the series examines how these banks provide essential services and support to local communities, often filling gaps left by larger financial institutions. This includes an analysis of how the sector’s unique ownership structure influences its approach to customer service, financial inclusion, and local economic resilience.

Environmental and sustainability frameworks

Sustainability is a core pillar of the series, reflecting the increasing importance of environmental, social, and governance (ESG) factors in the finance industry. The reports detail the sector’s progress in aligning its operations and lending practices with sustainable banking principles. This involves a review of how customer-owned banks manage environmental risks and contribute to positive environmental outcomes. The series tracks the evolution of these practices over time, allowing finance professionals to observe how the sector responds to global sustainability challenges and regulatory expectations. By providing a clear overview of these efforts, the reports help stakeholders understand the sector’s long-term commitment to environmental responsibility and its role in fostering broader sustainability.

Methodology and comparative analysis

The methodology employed throughout the series involves a detailed review of sector-wide contributions, supported by expert analysis and comparative assessments across the broader financial landscape. Rather than looking at institutions in isolation, the reports place the customer-owned banking sector within the context of the wider Australian banking sector. This comparative approach allows for a deeper understanding of the sector’s relative influence and the specific areas where it excels or faces challenges. The use of factual overviews ensures that the insights provided are grounded in rigorous review, offering a reliable benchmark for industry participants. This structured approach to reporting ensures that the series remains a credible source of information for those seeking to understand the nuances of mutual banking.

Application for finance professionals

For finance professionals, the series serves as a vital tool for assessing industry trends and making informed decisions. The benchmarks provided in the reports, such as those found in the 2022 edition, allow for a better understanding of the role customer-owned banks play in fostering competition and sustainability. Professionals can utilise these insights to align their own practices with sustainable banking principles or to evaluate the competitive positioning of different banking models. Furthermore, the annual updates to the series ensure that the information remains relevant, tracking changes in the sector and providing a continuous narrative of its impact. By engaging with this research, professionals can gain a more holistic view of the Australian banking industry and the evolving expectations of consumers and regulators alike.