Research shows you can bank on ‘customer owned’ in a sector with its share of trust issues
Customer-owned banks - including Tasmania’s Bank of us - have been recognised as Australia’s most trusted banking sector, according to the latest Roy Morgan Bank Trust and Distrust Scores Report.
The report, based on Roy Morgan’s ongoing Risk Monitor, shows customer-owned banks have further strengthened their position in Australian hearts and minds since 2023.
In the research, which surveys about 25,000 Australians1 each year, the broader banking sector ranked 24th out of 27 industries for net trust, only above telecommunications, supermarkets, and social media companies. By contrast, the customer-owned banking sector ranked 7th.
“Trust is something that is earned, and customer-owned banks’ people-first approach translates to competitive rates, innovative products, superior services, and a strong commitment to local communities, which explains why Australians continue to place their trust in mutual banks,” Customer Owned Banking Association (COBA) CEO Michael Lawrence said.
“Customer-owned banks are built differently. We’re owned by our customers, which means our purpose is to create long-term value for them and their communities. Unlike listed banks, financial performance is not our purpose - it enables our purpose,” he added.
Bank of us CEO Paul Ranson said the results would be a source of pride for more than 160 staff across the State.
“Our commitment is to put people at the heart of banking,” Mr Ranson said. “This includes high levels of personalised service and really getting to know our customers – often on a first-name basis,” Mr Ranson said.
“We see it is a big point of difference in a sector where the broad trend over decades has been to centralise and embrace increasing levels of efficiency through technology.”
“Customers are more than a number to us. We see that reflected in our customer satisfaction result which is running at 97%, well ahead of the whole-of-sector benchmark.”
The improved score for customer-owned banks in the Roy Morgan research contrasts starkly with the broader banking industry. Since May 2023, distrust has worsened with 3.2 million (14.2%) of Australians aged 14 and over now expressing distrust towards either specific banks or the overall banking sector in general. In contrast, customer-owned banks have improved collective Net Trust Score2 over the same period.
The report also found Australians define trust using terms like ‘reliable’, ‘good service’, and ‘honest’, but describe distrust with expressions like ‘greedy’, ’profit-driven’, and ‘unethical’.
“Customer-owned banks are built on a 'profit-for-purpose' philosophy, prioritising social and economic well-being, not just profits. That difference really matters, and Australians are recognising it,” Mr Lawrence said.
Customer-owned banks collectively serve over 5.4 million Australians and have been providing purpose-led banking for nearly 180 years.
1 Reporting period is 12 months to January 2025. The customer-owned banking sector outperformed even the highest-rated investor-owned bank, with a collective Net Trust Score higher than any individual bank.
About the Roy Morgan Risk Monitor Methodology
Since April 2018, the Roy Morgan Risk Monitor has been asking approximately 2,000 Australians aged 14+ every month (more than 25,000 per year) which companies they TRUST and which companies they DISTRUST. Roy Morgan also asks Australians WHY they trust or distrust their nominated brands – recording exactly what respondents say in their own words. The research is open-ended and unprompted. That means for people who nominate a brand, it is so top-of-mind that they put it ahead of all other brands swirling around in their consciousness. Importantly, both customers and non-customers are asked to nominate brands.
