Customer Owned Banking Association (COBA) Company Profile

Background

The Customer Owned Banking Association (COBA) serves as the industry association for Australia's customer-owned banking institutions, including mutual banks, credit unions, and building societies. COBA's mission is to champion the customer-owned banking model and advocate for a more competitive retail banking sector that benefits all Australians. With a vision centered on people and communities, COBA represents 56 member banks across the nation, collectively serving over 5 million Australians.

Key Strategic Focus

COBA's strategic objectives include:

Advocacy: Promoting policies that support the growth and sustainability of customer-owned banks.

Member Support: Providing expert advisory and support services, including dedicated fraud and financial crimes assistance.

Public Awareness: Educating consumers about the benefits of banking with customer-owned institutions.

By focusing on these areas, COBA aims to enhance the resilience and competitiveness of the customer-owned banking sector.

Leadership Team

Michael Lawrence: Chief Executive Officer since December 2017. Previously served as Managing Director of AMP Bank for eight years and has held senior roles in corporate, commercial, and retail banking across Australia, the UK, and the USA. Appointed as a Director of the World Council of Credit Unions in April 2018 and currently serves as Deputy Chair.

Stephanie Elliott: Chief Operating Officer, leading strategic engagement, reputational, and business initiatives. Her team encompasses government relations, media, marketing, communications, events, business services, and member functions. Holds a Bachelor of Laws, a Bachelor of Arts, and a Master of Laws from the Australian National University.

Mark Nguyen: Chief of Policy, managing engagement with policymakers, regulators, and stakeholders in regulatory policy development and implementation. Joined COBA as a Policy Adviser and has been a passionate advocate for the customer-owned banking sector since 2016. Holds a Bachelor of Finance and a Master of Economics from the Australian National University.

Leanne Vale: Chief of Financial Crimes and Cyber Resilience, leading the Financial Crimes team in delivering specialist technical advisory to members. With over 30 years of management experience in the financial services sector, she has held roles in regulatory compliance, audit, and financial crimes risk management. Holds an Advanced Diploma in Finance and a Master of Business Administration from Charles Sturt University.

Adeline Siew: Head of Business Services, responsible for finance and accounting functions, human resources, and operations. With over 16 years of experience in the financial services sector, she has held various roles at Westpac, specializing in accounting, risk, and managed funds operations. Holds a Bachelor of Commerce from the University of New South Wales and is a Certified Practicing Accountant.

Brad Pragnell: Head of Strategy, responsible for sector strategy development, strategic policy initiatives, and COBA's corporate strategy. Prior to joining COBA, he consulted in North America, South Asia, East Africa, and Australia on a wide range of strategic and policy issues within banking and financial services.

Competitor Profile

Market Insights and Dynamics

The Australian banking sector is characterized by a mix of major banks, regional banks, and customer-owned institutions. Customer-owned banks account for approximately two-thirds of the total number of domestic Authorized Deposit-taking Institutions (ADIs) and deliver competition, choice, and high levels of customer satisfaction in the retail banking market. More than 5 million Australians choose to bank with a customer-owned bank.

Competitor Analysis

Major Banks: The "Big Four" banks—Commonwealth Bank, ANZ, NAB, and Westpac—dominate the market with extensive branch networks and a wide range of financial products. However, they have faced challenges related to customer trust and satisfaction.

Regional Banks: Institutions like Bendigo Bank and Bank of Queensland offer services similar to the major banks but with a more localized focus.

Customer-Owned Banks: Institutions such as Bank Australia, Beyond Bank, and Qudos Bank operate on a customer-owned model, emphasizing member benefits and community engagement.

Customer-owned banks have consistently outperformed major banks in customer satisfaction. For instance, the Roy Morgan Customer Satisfaction Consumer Banking in Australia report revealed an 89.5% satisfaction rate for Australians who used customer-owned banks as their main financial institution, compared to a 75.4% rating for major banks.

Strategic Collaborations and Partnerships

COBA collaborates with various stakeholders to strengthen the customer-owned banking sector. Notably, COBA is a member of the World Council of Credit Unions (WOCCU), the peak international body for the credit union movement globally. This partnership allows COBA to engage in global discussions and initiatives that benefit its members.

Operational Insights

COBA's advocacy efforts focus on ensuring a level playing field for customer-owned banks. The association has welcomed government reviews into banking competition, emphasizing the need for regulation that considers the unique characteristics of smaller and medium-sized banks. COBA has raised concerns about regulatory compliance burdens that disproportionately affect customer-owned banks, potentially diverting resources away from customer service and innovation.