Teachers Mutual Bank was faced with an unusual challenge when COVID-19 struck. Three of the group’s divisions, Teachers Mutual Bank, UniBank and Firefighters Mutual Bank employ mobile staff to meet customers in their workplaces.

Home loan specialists visit fire stations and schools to meet members. Staff operate booths at university open days to sign up new members.

Those avenues have all been cut off since early this year and the group has had to be more nimble than most in moving to digital banking services.

Teachers Mutual Bank chief executive Steve James said that, as a result, asset growth was limited to just 1.2 per cent during the year to June 2020.

James said the group has turned the corner and during the September quarter its home loan portfolio grew 6.6 per cent.

“We had to change the business model. It took some time to come to grips with it. We have been successful with our face to face approach for many years and we had to put Zoom meetings and other digital services in place very quickly. We have also increased our reliance on brokers,” he said.

Teachers Mutual Bank made a net profit of A$25.7 million in the year to June – down from $27.1 million the previous year. The fall was largely the result of higher impairment provisions.

The group had a very low rate of loan deferrals – just 4 per cent of home loan assets at the peak in June and 1 per cent currently.

“Our members are key workers and, while universities have been affected, most of our members are still in their jobs.

Teachers formed a new division last year, Health Professional Bank, which was a start-up rather than an acquisition. James said he was pleased with the progress of the new business, which sold $230 million of home loans during the financial year.

While the group is now pursuing a digital-first strategy it is also working to enhance its socially responsible credentials.

It invests 7 per cent of net profit into the community. It increased the number of products certified by the Responsible Investment Association of Australia by 85 per cent, including all its mortgage and deposit products.