Community banking 'catches on'

More than 1,000 consumers in New South Wales are making use of a community bank in South Grafton.

A recently-established community bank in New South Wales is proving popular among consumers.

Julie-Ann Rose, chair of the South Grafton Community Bank, points out that in its first year of trading the financial services provider has attracted some $12 million deposits and loans.

She predicts that it will take on an additional $8 million worth of business over the next six months.

Meanwhile, the Daily Examiner points out that such Australian banking facilities - in which half of the South Grafton branch's profits are invested in the local community and the remainder going to parent company Bendigo Bank - "has caught on" in recent months as major lenders close their rural banks.

At present the bank has some 1,350 account holders, those searching for a bank account in the area could be interested to hear.

Meanwhile, InfoChoice chief executive Shaun Cornelius recently told the Sunday Herald Sun that consumers should compare accounts from smaller banks as well as the big four as "some terrific deals" are currently available.

By Kate Guthrie