Everything You Need To Know About Building Society

A building society is a financial institution that provides banking and other financial services to its members. The members of a banking society also serve as its owners. A building society serves as an alternative financial provider to banks by providing a different banking philosophy. This philosophy is based on cooperation, mutual benefit, and good customer service. A building society aims to meet the needs of its members and serve its community. The board of directors and managers of a building society are responsible for formulating policy actions on strategic direction and allocation of resources and services. These people have exceptional knowledge on regional needs and opportunities.

A building society is a community based financial institution that upholds the financial welfare of its depositors and borrowers. This is in sharp contrast to non-mutual financial institutions that primarily operate to maximise profits for its shareholders. A building society offers convenient and secure banking services and provides loans at reasonable interest rates. A building society meets similar regulatory standards as Australian banks though it is primarily focused on customer service. Building societies play a prominent financial role in the Australian countryside. A building society usually has a head office outside a capital city. It is very influential in regional communities and has continuously increased its financial prominence.

There are around 150 building societies in Australia at the present time. All of them are affiliated with the Association of Building Societies and Credit Unions (Abacus-Australian Mutuals). Abacus-Australian Mutuals is the main industry body for building societies and credit unions in Australia. Abacus was established as a joint venture among the Australian Association of Permanent Building Societies, the Credit Union Industry Association, and the National Credit Union Association. Abacus-Australian Mutuals has over four million individual members throughout Australia and an estimated $60bn in total assets as of 2007.

The ABS Building Society is an Abacus affiliated building society that provides excellent financial and banking services to its community. Located in Armidale, New South Wales, the ABS Building Society was founded in 1970 by a group of businessmen who were dissatisfied with the way local banks mishandled the funds of their customers. ABS Building Society is a mutual organisation which enables its depositors and borrowers to become its shareholders. It has developed to become a financially stable institution that offers various investment products and borrowing options to its shareholders. At present, ABS Building Society has a capital adequacy ratio that is significantly greater than those of major Australian banks. ABS Building Society offers financial services and policies for savings accounts, term deposit rates, loan rates. It also provides other services such as secure self-storage facilities and the Bank Link system for delivery of bank statements.

Lifeplan Australia Building Society Limited is another Abacus affiliated building society that offers excellent financial services. For over 160 years, Lifeplan has experienced steady growth and now has an estimated $1.6bn worth of funds and assets. With offices in South Australia and Victoria, Lifeplan offers various financial service and policies for savings and investments, loans, health, and travel.