Frequently Asked Questions
What is a Mutual Bank?
A mutual bank is an Authorised Deposit Taking Institution (ADI) just like conventional banks, building societies and credit unions. As an ADI, we’re regulated and monitored by the Australian Prudential Regulation Authority (APRA).
However unlike a normal bank, a mutual bank is owned by its members. This means that a proportion of all profits are reinvested into improving the available products, services, and member experiences, instead of paying shareholder dividends.
In our opinion, a mutual bank is perceived as a financial institution that combines the strength and security of a retail bank, with a member oriented focus.
We'll now be known as a financially secure and sustainable ADI, that is owned by its members, for the benefit of its members.
What is the difference between a credit union, a mutual bank and a bank?
In many ways, credit unions and mutual banks are very similar. They are both owned by their members, and they invest a percentage of their profits for the benefit of their members. Banks differ in that they are owned by their shareholders, often by a majority of corporate shareholders, and pay a percentage of their profits as shareholder dividends.
Our financial strength as a credit union meant that we met a number of APRA's authorisation guidelines, and unlike some other financial institutions, we could legally use the term ‘bank’. As a mutual bank, our organisation is more sustainable and relevant for the future. We now have access to many new opportunities, which allows us to provide better opportunities for our members and our people.
Why did QTCU want to change to a Mutual Bank?
Being a mutual bank strengthens our market positioning, and ensures that we remain relevant. As QT Mutual Bank we’ll continue to grow and improve in a constantly changing financial landscape.
Our drive to become a mutual bank should not be seen as a criticism of being a credit union. We still strongly believe in the principles of mutuality. In fact, as a mutual bank, we still maintain the values and principles that we were founded upon.
Why did you become a Mutual Bank?
The Australian Government is starting to develop a more competitive and sustainable banking system for Australia. This reform process created a positive environment for QTCU to pursue the opportunity to become a mutual bank – a member-owned and member-oriented organisation. Becoming a Mutual Bank also offered us all the positive perceptions associated with a conventional bank such as financial strength, security and sustainability.
What does this mean for members?
As part of our rebranding strategy, we’re providing our members with a greater range of benefits including:
- Competitive fees;
- Improved products and services such as better internet banking and a new branded credit card; and
- A platform to expand our branch network in Queensland.
It's always been our ambition to create such a great banking experience that you’ll never want to bank anywhere else. As a mutual bank, we'll continue to reinvest a part of our profits back into our systems and people, in order to provide you with an even better banking experience.
Since 1965, our members have been a focus in every decision we’ve made and they’ll continue to be our priority. Becoming a mutual bank has given us the ability to strengthen our relevance and competitiveness in the financial services industry. We can now embrace new opportunities, which helps us to get even better at what we do.
How will this change affect products and services?
We’ll now be offering a greater range of retail banking products and services for the benefit of our members, such as better internet banking and a new branded credit card. We’re also improving accessibility through a new platform to expand our Queensland branch network.
Will there be an increase in fees?
There will be no increase to fees as a direct result of becoming a mutual bank. We’ll continue to provide our members with competitive fees, while increasing our capacity to reinvest back into QTMB. That way, we can provide better banking opportunities for you.
Is QTMB member-owned?
Yes. Becoming a mutual bank doesn’t change the governance or structure of the organisation, or the values and principles upon which we were founded. As a mutual bank, we are member owned and we’ll continue to reinvest a proportion of our profits back into improving our member experiences. We’ll retain our focus on friendly and personalised service, while moving towards a more sustainable and secure future for our members.
What does QT Mutual Bank Limited stand for?
QT carries forward the ‘Queensland Teachers’ elements of the organisation, allowing us to keep the history that has made our organisation what it is today. The ‘Mutual Bank’ part of the name brings the core values and principles of mutuality, combined with the positive perceptions associated with a conventional bank including financial strength, safety and security.
Why have you taken ‘teachers’ out of the name?
Since 1965, teachers have been an integral part of our organisation and they will continue to be into the future. The symbolism of the letter ‘T’ still evokes strong perceptions inside and outside of our organisation, and through this our name will continue representing the contribution of our teaching community.