Thoughts from CEO Andrew Hadley on the Financial Services Royal Commission into Misconduct in the Financial Services Industry
I suspect many of you would be closely following the headlines from the Royal Commission into Misconduct in the Financial Services Industry. Some of the revelations have indeed been alarming, and quite rightly, the media and public is heavily focussed on discussing the daily news reports emerging from the Commission.
As a P&N member, you may be wondering how the Commission findings might affect you, and P&N Bank itself.
I wanted to take this opportunity to remind and reassure you of several important differences between P&N and the major banks so you can feel confident that P&N continues to work in your best interests.
Before I do, let me confirm that to date, P&N has not been contacted by the Royal Commission however, some of our larger mutual banking peers were required to provide written submissions. Our Board and Executive are keeping a very close eye on proceedings and are already considering potential regulatory changes that may result from the Commission.
It is important to remember, as a customer-owned bank, P&N's business model is quite different. Unlike the major banks, our customers and shareholders are one and the same. P&N doesn't have to concern itself with a share price or choosing between its customers and third party shareholders. Our members are, and always will be, our sole focus.
Unlike the listed banks, we do not seek to maximise profit. Whilst we do look to make a profit, it is invested back into the bank to keep up with the rapid pace of technological change, and to continue providing you with a modern, progressive and safe banking alternative.
On your behalf, we operate a trusted, transparent and member-centric organisation that values ethics and fairness for all. We charge the lowest rates we can to our borrowers and we pay the highest rates we can to our depositors. Our fees are set on the basis of the cost to deliver the particular product or service. Our Board, Executive, Management and staff each have only one share, the same as every other member.
Like any organisation, there may be times when we make a genuine or unforeseen mistake. If that occurs, we inform those members who are impacted and we work to fix it as quickly and transparently as possible. We don't hide it and we don't need to wait to be told by a Regulator or an independent third party.
The daily Royal Commission headlines have revealed that there is a great opportunity for improvements in the financial services sector for the benefit of all Australians.
Richard Di Natale, the leader of the Greens, recently suggested the notion of a People's Bank in response to some of the revelations of the Royal Commission.
I would counter that the thriving $110 billion customer-owned banking sector in Australia, of which P&N Bank is a part, is already fulfilling that function for over four million Australians. Our sector has an exceptional track record of stability and customer satisfaction.
To learn more about the benefits of Customer Owned Banking, I encourage you to check out a video from the Customer Owned Banking Association.
The P&N team are working hard to continue to promote the benefits of customer-owned banking as a genuine alternative to publicly listed banks. I would also like to invite you to play a role in educating your family and friends about the benefits of customer-owned banks such as P&N, as the Royal Commission conversations continue. Should you have any questions for me, please feel free to email me at [email protected] and I will respond as quickly as possible.
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