Personalised banking helps societies' continued growth

Building societies recorded growth in housing lending of 11.2 per cent for the year to June 2007, a little off the pace of the wider market. Growth was stronger in the final quarter at 3.8 per cent.

Allowance must be made for the financial anomalies in cash movements prior to the deadline for the transition to the new superannuation taxation regime and the Home Building Society takeover of StateWest Credit Union, with the legal integration taking place on 3 July 2006.

Managers of two of the fastest growing, and still mutual, building societies contend their status, and superior customer satisfaction ratings, will underpin growth.

Stephen Porges, chief executive of Newcastle Permanent said: "There has been a societal push in Australia with a greater swing towards society and community, which is what the mutual sector represents. Our last customer survey identified a 97 per cent satisfaction rating.

"We are large and robust enough with a sufficient deposit base to maintain commercially competitive rates, with our Moody's and S&P ratings comparable to the banks, so we are secure."

Newcastle Permanent has over 50 branches, and according to Porges, is the dominant retail financial services group through northern New South Wales.

Another society on the expansion trail is Queensland-based Heritage, with 59 branches.