Building Society Australia 2025: Benefits, Relevance & Trends

Once the backbone of local communities, building societies have been quietly evolving in the background of Australia’s financial landscape. But in 2025, do they still offer something unique, or are they relics of a bygone era?

What Sets Building Societies Apart?

Building societies are member-owned financial institutions, traditionally focused on providing home loans and savings accounts. Unlike major banks, profits are reinvested for members’ benefit. In 2025, only a handful remain in Australia, such as Greater Bank and Queensland Country Bank, but they continue to attract Aussies seeking a community-first approach.

• Member ownership: Every account holder is a part-owner, giving members a say in how the society is run.
• Profits for people: No external shareholders means more competitive rates, lower fees, and tailored products.
• Local focus: Building societies have roots in regional Australia, often supporting local projects and charities.

While many have merged or converted into mutual banks, the core ethos remains: customer-centric service and community investment.

2025 Policy Updates and Regulatory Shifts

Australia’s financial landscape has faced significant regulatory updates in 2025. The Australian Prudential Regulation Authority (APRA) has implemented new capital adequacy standards, designed to bolster the resilience of all deposit-taking institutions, including building societies. These changes mean building societies must hold higher reserves, enhancing member security but also increasing operational costs.

Meanwhile, the Consumer Data Right (CDR) regime has expanded further in 2025, requiring building societies to offer seamless data portability for customers. This means switching between a building society and a bank is now easier than ever, and members can compare products in real time.

• APRA’s capital requirements: Safeguards member deposits but may limit riskier lending or expansion.
• Open Banking advances: Customers can see, compare, and switch products with fewer hurdles.
• Focus on digital services: Building societies are investing in mobile apps and digital banking tools to compete with bigger banks and neobanks.

These changes are helping building societies stay relevant, but they must balance regulatory compliance with member value.

Real-World Examples: How Aussies Use Building Societies in 2025

Consider Sarah, a first-home buyer in regional NSW. She chose a building society for her mortgage because of lower variable rates and the personal touch—she could meet her lender face-to-face. In 2025, societies like Greater Bank offer packages combining offset accounts, digital budgeting tools, and even green home loan options for energy-efficient upgrades.

Meanwhile, retirees in Queensland are leveraging building society term deposits with higher-than-average rates, while local businesses benefit from relationship-based lending and community grants.

• First-home buyers: Access to competitive home loans, educational workshops, and tailored support.
• Local businesses: Personalised lending and grants for community-focused projects.
• Digital natives: Modern mobile apps, instant payments, and customer-controlled data sharing.

With customer-owned governance, building societies often avoid aggressive cross-selling, focusing instead on transparency and long-term relationships.

Building Societies vs. Banks and Neobanks: What’s the Verdict?

Australia’s neobank boom has cooled since 2023, but digital challengers are still shaping expectations. While banks offer extensive product suites and flashy tech, building societies remain competitive through:

• Member-first pricing on loans and deposits
• Greater transparency and community reinvestment
• In-person service in regional areas, where big banks have scaled back branches

However, building societies do face challenges. Smaller scale means fewer products and less tech innovation than major banks. Some have rebranded as mutual banks to attract younger customers, but the core difference—member ownership—remains.

Should You Consider a Building Society in 2025?

For Aussies seeking a blend of competitive rates, local service, and a say in how their financial institution is run, building societies are still very much alive and kicking in 2025. While you may miss out on some of the bells and whistles of big banks, the member-first ethos and renewed digital focus are making these institutions worth a second look—especially for those in regional communities or anyone tired of the big four bank experience.