BRISBANE, Australia–A credit union here is proposing to merge with the Royal Automobile Club of Queensland as part of an effort to expand its offerings and market area and to respond to a financial landscape in Australia that is dominated by four large banks that control 78% of the retail market.
If completed, the merger would be the first of its kind in this country. Both organizations are what are known in Australia as “customer owned.”
Queensland Teachers Mutual Bank, which was founded as Queensland Teachers Credit Union in 1965 before changing its name in 2011—it remains a member-owned mutual––and the Royal Automobile Club of Queensland (known as RACQ) are proposing the merger, which has already been approved by RACQ’s members. QTMB’s members will vote on the merger in July.
If approved, the merged entity will have nearly $3.9-billion in total assets and nearly two-million members (1.6 million belong to RACQ). RACQ already offers a variety of financial products, including insurance to its members, via a network of more than 100 branches in Queensland. It also offers travel and roadside assistance services, but has been seeking to offer full-scale banking services.
In addition to core credit union offerings, Queensland Teachers would be able to offer additional products to members of RACQ, especially mortgages and credit cards. RACQ told local media it would like to absorb other building societies in the years ahead, as well.
Under the proposal, Queensland Teachers Mutual will be merged into the RACQ, keeping its name initially before being taken over by the better known RACQ brand.
In a statement on its website, RACQ said, “Our members have trusted RACQ for over 110 years, and now we want to deliver honest, easy, and great value banking, without any hidden fees or excessive charges. By adding banking to our already strong assistance, insurance and lifestyle products, we can bundle more benefits for members across our entire range. As our focus is on looking after our members, not returning profit to shareholders, this merger gives us the opportunity to bring even more value to our 1.5 million members.”