the planet Achieving scale through organic growth and mergersEnsuring supply chain/
Annual customer benefit
bankmecu aims to combine a responsible approach to banking with a competitive pricing proposition. Each year, we commission Canstar Cannex, an independent financial services research group, to quantify the benefit our customers receive in the form of competitive interest rates and fees. Specifically, Canstar Cannex compared pricing on our deposits, loans and transactions at 30 June 2014 with the average pricing offered by the four major banks.
Canstar Cannex valued the Bank’s customer benefit at $22.7 million, which means each customer was on average $180 better off banking with us. Borrowers were better off by $12.4 million and depositors were better off by $10.3 million. This return was on top of the wealth we created for customers by growing our capital reserves.
In past years, loans delivered a larger proportion of the customer benefit, accounting for 70% of the benefit in 2012. In 2014 loans delivered a lower 55% of the benefit, reflecting the greater competition in the market. By contrast, the proportion of the benefit flowing from our deposit products grew 33% over the same period.
Transaction fees and exemptions
As required by the RBA, ASIC and the Mutual Banking Industry Code of Conduct, bankmecu fees reflect the actual cost of providing the product or service. We also subsidise these costs. In 2014 it cost approximately $5.3 million to provide payment access services. Customers paid approximately $5.0 million towards these costs through transaction fees. The subsidy of $270,474 is larger than the $168,707 provided the previous year.
In 2014 we also provided fee exemptions to:
- 735 customers who took out a loan package
- 168 customers with school and school related accounts
- 96 community sector customers that operated a Community Access Account with a balance over $100,000
- 59 customers with special needs.