The mutual structure and culture is prominent in the industry. There are also institutionally owned and controlled societies, part of large quality financial service providers and listed building societies. Strict APRA standards preclude any individual owning or controlling a building society. The damage to banks' reputations will to take generations to be forgotten. Building societies are an alternative source of retail financial service with APRA security and status.
Building societies can fill many gaps arising from the disillusionment of households.
Building societies are offering a comprehensive range of financial services in a very competitive housing finance market. New lenders using securitisation and as agents for financial institutions and fee based sales persons and franchisees dramatically entered the home loan market and by mid 1997 had bitten deeply into the major banks' client base. By 2000 however that rapid growth had moderated as costs of funding and competition from banks and building societies intensified. The way forward for societies is to be price competitive with add-on essential services. By virtue of their regional origins and local decision making, many societies have an edge to offer in the extremely competitive housing finance market.