Federal Treasurer Wayne Swan signified the looming role that credit unions would play once the Australian banking industry has absorbed the reforms set to be introduced by the national government, by signing up for his own credit union account.

In opening the new account, Swan said on Friday that his act is his way of telling the country's big four that Australians would exercise their option to look for better deals, which should be the new banking reality poised to be pushed by the federal government's banking reforms.

He said that the same reality could be said on the promised reform measures due next week, which he mostly described as lacking in any magic spell but solid enough to provide the required building blocks for a much healthier competition in the banking sector.

Swan told AAP that the reform package to be unveiled by the government is mostly motivated by methodical approach and "it will put in place the building blocks of a more competitive system but I will make the point there is no silver bullet."

He cautioned stakeholders of the industry not to expect any shock and awe effect on the government's reform initiatives as he pointed out that "there is no magic solution that can change things dramatically overnight."

The magic rests, according to Swan, on bank consumers who have the power to shop around, consider and then decide for a switch if they feel that services rendered by Australia's major banks proved insufficient and disadvantageous.

By availing of the services of a credit union, the federal treasurer said that he is pointing to the viable alternative banking services that small lenders could offer as he emphasised that "credit unions generally, our regional banks generally and our building societies generally are safe and they are competitive."

The move also serves as a concrete warning to Australia's four major banks that banking consumers would not hesitate to switch banks "if they feel they can get a better deal."