Any time up until a few years ago the difference between mutuals and banks was clear-cut: mutuals offered cheap banking services, they were well liked by their customers and they contributed to their local communities.These days the distinction is not so clear. In a bid to improve their standing with consumers, banks have cut the cost of their services, improved their service standard (and improved dramatically in customer satisfaction ratings) and become more generous in their community programs.Not only that, but the big banks have charged ahead with technology developments that small institutions are struggling to match.These trends raise a question as to whether mutuals still have a distinctive place in the market.QT Mutual Bank's chief executive, Mike Murphy, believes they do. Murphy announced his retirement this week. He will step down in September, after 38 years at QTMB - the last eight of these as chief executive.Murphy said: "Banks have worked on those areas, but we are still in front. They have to look after the interest of shareholders first and foremost. We are there for our customers and members, and our culture is truly committed to that approach."But Murphy conceded that mutuals had not done a good enough job of promoting their advantages. "It has been hard to get it out there," he said.Late in 2011, Queensland Teachers took up the mutual bank designation - one of the first mutuals to take advantage of a change in the Banking Act that allows credit unions and building societies to use that title.Murphy said it was a good move. "The perception of the organisation has changed. People recognise that we are regulated in the same way as a bank. "It has opened doors to new sources of funding. We have good take-up of our certificate of deposit program."Under Murphy's leadership, QT Mutual Bank has stayed out of the credit union consolidation market. He said his organisation has pursued mergers but none have come off.He said: "We are not opposed to the idea, but for a merger of mutuals to succeed you need two organisations with similar structures and a strong commitment on both sides. "It is still part of our strategy. We would like to position ourselves as the Queensland mutual bank."On the technology side of things, Murphy said his approach has been to make sure that QT Mutual Bank is a "fast follower"."We have a budget for technology investment, but obviously we have to be more targeted and specialised in what we do."