2014 was a very challenging year for the mutuals industry. Operating profit after tax has fallen by 1.5 percent continuing a 3-year trend, and increasing industry concentration is a key issue being examined by the Financial System Inquiry. Yet the industry has seen continued transformation in technology and innovation.
The mutuals now have a real choice to make as a sector. Do they want to continue to operate as individual small businesses or is there an opportunity to achieve scale benefits by operating collaboratively and by facing the market with a unified value proposition?
The review provides a detailed financial analysis of the mutuals industry based on analysis of nine building societies, 10 mutual banks and 44 of the largest credit unions authorised by APRA. In addition we surveyed the industry to gain their perspectives on social media, mobile technology, regulation and risk management.