Australian Report: CUs Better Than Banks for Personal Loans


January 11, 2007

SYDNEY, Australia-Credit unions dominate the annual list of five-star personal loan products compiled by CANNEX, an Australian financial services research group.

Thirty-eight of the 45 products awarded five stars on the CANNEX list belonged to credit unions. Five stars are used to indicate products that deliver superior value, based on interest rates, set-up fees, continuing costs and features.

This is the first time that banks have been excluded from the five-star section of the annual review of personal loan products at Australian financial institutions.

The remaining five-star products on the list included five provided by building societies and two from financial services companies.

Anthony Sexton, CANNEX senior research analyst, noted that big is not always better when it comes to financial services. While major banks make most personal loans in Australia, he said, "Credit unions offer better products." Australia's 143 credit unions serve more than 3.5 million members.

World Council of Credit Unions is the global trade association and development agency for credit unions. World Council promotes the sustainable development of credit unions and other financial cooperatives around the world to empower people through access to high quality and affordable financial services. World Council advocates on behalf of the global credit union system before international organizations and works with national governments to improve legislation and regulation. Its technical assistance programs introduce new tools and technologies to strengthen credit unions' financial performance and increase their outreach.

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