The NME report shows that Australia’s co-ops and mutuals had combined active memberships of 37.3 million during the 2024 financial year, up from a previous 34.7 million. There was a total of 1834 co-ops and mutuals, directly employing at least 94,400 Australians. This was a slight increase on the previous year, despite heightened merger activity, particularly among customer owned banks, driven by the need to find scale and efficiencies in a competitive banking environment. TOP 10 CO-OPERATIVE MUTUAL ENTERPRISES BY TURNOVER owned bank, People First Bank, also highlighted the unique challenges facing the sector. “Increasingly, Australians are turning to organisations that act with integrity, serve a clear purpose and contribute to their communities. “That presents a real opportunity for co-ops and mutuals, but also a clear challenge. Customers want to bank with organisations that have a social conscience and do good. However, this is not enough, they also need their experiences to be simple and tailored to their needs. We need to meet both of these elements if we are going to continue to succeed.” The NME report shows that the top 100 managed assets worth $217 billion, up 4.8 per cent on the previous year, while net profit after tax was $1.87 billion. Co-operatives and mutuals exist for the benefit of their members, which may be customers, staff, suppliers, or a combination of stakeholders. Unlike listed companies, they are not motivated by the need to maximise profits and pay dividends to investors. Instead, they can use surplus funds to reinvest in services and deliver benefits to members. Eight in every 10 Australians are members of at least one co-operative or mutual. Outgoing Chief Executive Officer of HCF, Sheena Jack, said the mutual model’s strength lay in “putting people before profits”. “Our members aren’t just customers—they’re the reason we exist. Every decision we make has our members at the centre. Being part of a mutual like HCF means members benefit directly from the value we create, from lower premiums, more generous benefits, better customer service, and access to health programs that support their wellbeing.” CME STATE SECTOR TURNOVER CBH WA Agribusiness $4.69 BN HCF NSW Health insurance $4.18 BN Capricorn Society WA Purchasing services $3.73 BN HBF WA Health insurance $2.34 BN RACQ Qld Mobility services $2.33 BN Australian Unity Vic Financial services $2.17 BN RAC WA Mobility services $1.59 BN People First Bank SA/Qld Financial services $1.32 BN Newcastle Greater NSW Financial services $1.29 BN Teachers Health NSW Health insurance $1.10 BN That merger activity has continued in the current financial year with Bank Australia and Qudos Bank set to unite in July, while Teachers Mutual Bank Limited and Australian Mutual Bank Limited, and Regional Australia Bank with Summerland Bank, are considering mergers for 2026. Commenting on drivers behind consolidation, Bank Australia CEO and managing director Damien Walsh said: “Customerowned banks continue to face common challenges around economies of scale, replacing legacy technologies and growing cybersecurity threats. “How smaller institutions balance these competing challenges and drive continued improvements in customer experience will be critical to their future success.” 6 BUSINESS VIEW OCEANIA VOLUME 07, ISSUE 06
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