NEW PLYMOUTH, N.Z.–Members of four out of five credit unions here that are part of a proposed merger have voted in favor of the combination.
Members of NZCU Baywide were the last to vote and give the deal the go-ahead. The credit union will join with NZCU South, NZCU Central, and Aotearoa Credit Union to create a much larger institution that will be more efficient, according to the credit unions involved.
The merged credit union will operate under the name NZCU Baywide, until such time as a review is completed alongside re-establishing the strategic direction, the credit union said. Once the combination is complete, the CU will be the largest credit union in New Zealand with approximately $560 million in assets and 64,000 members.
‘Solid Foundations’
“When we formally announced our intent to unite in December 2018, we were simply building on earlier collective discussions to provide solid foundations for a sustainable future,” Iain Taylor, chair of NZCU Baywide, told Scoop Business. “We have from day one held a vision to continue to develop a strong, competitive and sustainable sector that delivers on its purpose of ‘people helping people’ across New Zealand.”
The 3,600 members of NZCU Steelsands Credit Union, voted against the merger.
The interim CEO of the merged entity will be Gavin Earle, current CEO of NZCU Baywide.
‘Scale Does Matter’
“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 and Kiwi owned,” added Taylor. “The larger credit union will deliver efficiencies, and following a review, intended better pricing for member-owners. It will also result in greater reach across the combined nationwide branch network and online, more potential to invest in technology to further improve services and stronger capital for the benefit of member owners.
Initial plans call for representation from the four credit unions on the board of the merged institution. Under New Zealand law, there will now be a compulsory six week “stand down” period, allowing for any objections to be lodged and addressed.