New data suggests Australian investors are moving away from the big four banks in the wake of the royal commission.
Data from the banking regulator, APRA, for year-on-year growth has shown that customer-owned banking institutions have grown their total housing loan book by 8.1 per cent.
By comparison, authorised deposit taking institutions (ADIs) recorded 4.5 per cent and it was a 3.7 per cent result for the major banks.
“The customer-owned banking sector is growing faster than the overall banking sector as 12 months of royal commission hearings take their toll on Australia’s investor-owned banks,” said the Council of Small Business of Australia (COSBOA).
Consumers are also choosing to switch their general banking services, according to COSBOA, with deposits growing year-on-year by 6 per cent for the customer-owned banking sector. By comparison, the big four recorded 2.1 per cent, and other ADIs recorded 3.2 per cent.
“The deposit growth has seen the customer-owned banking sector break its previous records and now hold more than $100 billion in deposits. The customer-owned banking sector is the fifth-largest holder of household deposits outside the big four,” COSBOA said.