Borrow
Mutual bank and credit union proceed with merger
The merger is set to create an organisation with 720,000 members and total assets of over $22.5 billion.
Mutual bank and credit union proceed with merger
The merger is set to create an organisation with 720,000 members and total assets of over $22.5 billion.
Heritage Bank and People’s Choice Credit Union have confirmed their intention to proceed with merger plans after completing an extensive due diligence process.
The proposed merger, which was originally announced last year, would create one of the largest customer-owned banking organisations in the country with 720,000 members and total assets worth more than $22.5 billion.
In a statement on Wednesday, the two firms said that the proposed merger provided a “unique and compelling opportunity” to improve member benefits including enhanced products, services, digital capabilities and competitive pricing.
“We are confident a merger is firmly in our members’ best interests. Joining forces represents a unique pairing of equals, offering unparalleled cultural and strategic alignment and an absolute commitment to mutuality,” said Heritage CEO Peter Lock.
“By coming together, we will create a national member-owned banking organisation that will be of a size and scale to enable us to deliver outstanding products and services for our members,” added People’s Choice CEO Steve Laidlaw.
The proposed merger is still subject to regulatory and member approval, with detailed information to be provided to members ahead of a vote at the annual general meeting of both organisations later this year.
If members vote in favour of the proposal, Heritage and People’s Choice expect the merged organisation would be established early next year.
As part of the merger, there will be no redundancies below executive level as well as no branch closures, the two firms said.
Heritage and People’s Choice have also agreed to the governance structure of the combined entity, which will include Mr Lock as CEO and Mr Laidlaw as deputy CEO.
Mr Lock will retire 18 months after the merged organisation has been established, with Mr Laidlaw then moving into the CEO role.
Additionally, existing People’s Choice chairman Michael Cameron will be appointed chairman of the merged organisation and current Heritage chairman Kerry Betros will take up the role of deputy chairman.
RELATED ARTICLES
Banking
Open Banking data proves superior to screen scraping, Frollo study reveals
Frollo, a leading Open Banking provider in Australia, has published a study demonstrating the superior quality of data obtained through Open Banking compared to traditional screen scraping methods, ...Read more
Banking
Global banknote study reveals gender disparity: Only 7.54% depict women
A recent study by TradersBest has uncovered a significant gender disparity on the world's banknotes, with findings indicating that out of 716 individuals featured across 115 countries, only 54 are ...Read more
Banking
JPMorgan Chase leads the global banking sector in AI adoption, outpacing rivals
A recent study indicated that JPMorgan Chase has positioned itself as the leading force among financial institutions embracing artificial intelligence (AI) for enhancing customer satisfaction and ...Read more
Banking
Exact Payments acknowledged as a leading payments ISV by the Electronic Transactions Association
The Electronic Transactions Association (ETA), a prominent advocacy and trade association for the payments industry, has recognized Exact Payments as one of the Top 10 Payments Independent Software ...Read more
Banking
The future of digital banking in Australia: Trends and implications for investors
As technology continues to reshape our lives, its influence on the financial sector is particularly transformative. One sector at the epicentre of this change is banking. Read more
Banking
ANZ sued for allegedly misleading customers
The corporate regulator has commenced civil proceedings in Federal Court. Read more
Banking
Banks report $14.4bn profit amid pressure on net interest margins
Australia’s major banks have reported a significant boost to their bottom lines and returns in the first half of the 2022 financial year, signaling sector-wide resilience despite persistent pressure ...Read more
Banking
Major banks report rising profits
NAB and ANZ announced their half-year results this week. Read more
Banking
Open Banking data proves superior to screen scraping, Frollo study reveals
Frollo, a leading Open Banking provider in Australia, has published a study demonstrating the superior quality of data obtained through Open Banking compared to traditional screen scraping methods, ...Read more
Banking
Global banknote study reveals gender disparity: Only 7.54% depict women
A recent study by TradersBest has uncovered a significant gender disparity on the world's banknotes, with findings indicating that out of 716 individuals featured across 115 countries, only 54 are ...Read more
Banking
JPMorgan Chase leads the global banking sector in AI adoption, outpacing rivals
A recent study indicated that JPMorgan Chase has positioned itself as the leading force among financial institutions embracing artificial intelligence (AI) for enhancing customer satisfaction and ...Read more
Banking
Exact Payments acknowledged as a leading payments ISV by the Electronic Transactions Association
The Electronic Transactions Association (ETA), a prominent advocacy and trade association for the payments industry, has recognized Exact Payments as one of the Top 10 Payments Independent Software ...Read more
Banking
The future of digital banking in Australia: Trends and implications for investors
As technology continues to reshape our lives, its influence on the financial sector is particularly transformative. One sector at the epicentre of this change is banking. Read more
Banking
ANZ sued for allegedly misleading customers
The corporate regulator has commenced civil proceedings in Federal Court. Read more
Banking
Banks report $14.4bn profit amid pressure on net interest margins
Australia’s major banks have reported a significant boost to their bottom lines and returns in the first half of the 2022 financial year, signaling sector-wide resilience despite persistent pressure ...Read more
Banking
Major banks report rising profits
NAB and ANZ announced their half-year results this week. Read more
