5 credit unions have signed a conditional heads of agreement to merge. While the boards of the 5 credit unions have agreed on the merger, they still have to go through the formal process of obtaining member approval.
The 5 – NZCU South, NZCU Central, NZCU Steelsands, Aotearoa Credit Union & NZCU Baywide – had already made one important move in the merger direction this year, when they launched a new core banking system.
The merged entity will have over $600 million in assets, serve about 75,000 member owners and have almost 300 staff.
NZCU Baywide chair Iain Taylor, spokesperson for the merged entity, said yesterday the operational platform was already in place, was on a par with the technology used by leading tier 1 banks and would give the merged credit union greater flexibility to grow its customer base and add many more services & systems.
“We have a collective vision to continue to develop a strong, competitive & sustainable sector that delivers on its purpose of ‘people helping people’ across New Zealand.
“The scale of the larger credit union will deliver efficiencies, better pricing for savings & lending rates, and reach across the combined nationwide branch network & online. It will bring more potential to invest in technology to improve services & wider access to capital for the benefit of member owners.
“Scale does matter in an increasingly competitive financial sector, and we all believe our united approach will bring a competitive banking alternative that is 100% customer- & Kiwi-owned.”
Attribution: Group release.