WAUCHOPE, NSW, Australia–Members of Regional Australia Bank and Holiday Coast Credit Union here have approved a merger between the two institutions.
The combined operation will have more than 85,000 members and assets of approximately $2.2-billion.
Such mergers are not unusual in Australia. Regional Australia Bank is a mutual institution, better known as a “customer-owned bank” in the country.
Regional Australia Bank chairman Graham Olrich told the Northern Daily Leader that "while the sector proudly continues to grow, as people turn away from the big four banks, it is smaller institutions that find it difficult to sustain that growth and keep pace with digital transformation and increasing regulatory complexity. We are excited by the prospect of value that this merger will deliver for our members.
‘Key Benefits’
"Competitive products and services, fair fees and charges as well as greater investment in technology will be some of the key benefits,” Olrich continued. "This is what the partnership is all about, creating sustainable value for members and offering genuine support to the communities where they live and work."
Olrich will stay on as chairman of the new entity, with Kevin Dupé retaining his position as Regional Australia Bank CEO.
Neville Parsons, who is retiring as CEO of Holiday Coast Credit Union, will join directors Allan Gordon (chairman) and David Johnson as members of the Regional Australia Bank Board.
According to the Northern Daily Leader, the merger is one of the biggest seen in the customer owned banking industry in recent times, and will take effect from July 1 if approved by the Australian Prudential Regulatory Authority.