Welcome to the other way to bank
Recently we wrote to our members to advise that the Community CPS Group was applying to become a 100% customer-owned bank. We are thrilled to announce that our application has been approved and, from 1 August 2013, we will become a mutual bank – Beyond Bank Australia.
We’ve always done all we can to offer more to our members and to benefit our communities. So we can offer even more, we’re undergoing an evolution. We’re becoming a mutual bank – Beyond Bank.
As Community CPS we are member-owned, take pride in customer service, and believe in making a positive difference in the community. None of that will change.
In fact, by becoming a mutual bank, we’ll be able to provide even more for our members and their communities. As Beyond Bank, we can offer the best of both worlds – the security and competitive rates of a bank, together with the member-oriented philosophy and benefits of a credit union.
Becoming a mutual bank allows us to attract wholesale deposits from places that, as a credit union, we weren’t able to. This means lower fees and charges and higher returns for you, as for all our members.
We’ll continue to benefit all the communities in which we operate, whether it be through volunteering, specialised banking products or financial support for not-for-profit organisations.
All the things you love about the Community CPS Group won’t change.
Our strong member focus, our customer service, our support for your community – none of these things will ever change. We will always put customers first and invest in their communities.
The accounts and products you hold with us, the people you deal with, your access to the ATM network and the instructions you give us in relation to your accounts will not change either.
Naturally, there will be some things that need to change. You can expect to see our staff in new uniforms, as well as new-look statements, debit and credit cards (on renewal), website and online banking.
We will also have new branch signage rolled out across the country.
And you’ll love the other way to bank – Beyond Bank Australia.
As a 100% customer owned bank, our profits are used only to benefit our customers and their communities. We call this approach banking + good.
And what does that mean for you? Well, things like improved banking products, better rates and less fees and charges.
At Beyond Bank Australia we will continue to give you the best of both worlds; the flexibility and security of a bank, together with the customer service levels you’d expect from a mutual organisation.
We’re a bank that is committed to the prosperity of many, not just the few.
To find out more about Beyond Bank Australia, or if you have questions about how the change may affect you, please phone 13 25 85, visit your local branch or email firstname.lastname@example.org
We’re becoming a 100% Customer Owned Bank
We are pleased to advise that we have recently sent a letter out to our members announcing we are becoming a mutual bank. By doing this we’ll be able to offer our members even more and position our business for the future.
In 2010, the Federal Government’s Competitive and Sustainable Banking System reforms were launched. These reforms encouraged large credit unions and building societies who met the Australian Prudential Regulatory Authority’s authorisation guidelines on minimum capital requirements to apply to become a bank.
As one of Australia’s largest and best performing mutual financial institutions we met the eligibility criteria to apply to use the term ‘bank’.
Following extensive analysis and research across Australia we have concluded that there are opportunities in becoming a bank. We believe a mutual bank that is still 100% owned by its members and which is underpinned by strong values and a cooperative philosophy, offers a real alternative to consumers.
Since our beginning we have grown and evolved in order to remain relevant to our members. Today, we firmly believe our continuing success lies in becoming a mutual bank. The bank will combine the strengths of the credit union, namely our values, our member focus, and our strong customer service, together with safety, security and high levels of financial expertise.
We will remain a 100% customer-owned bank and continue to reinvest our profits back into the organisation to deliver a better banking experience through an expanded product and service offering, better interest rates and lower fees, while continuing our support of the many worthy causes in the community through our Foundation.
- What will change:
Our funding: We’ll be able to attract funds from more organisations, meaning we can support our future growth and offer more for our members.
Our name: As a credit union, we trade under a number of brands throughout Australia. By bringing these brands under one name we will better link our people across the country resulting in savings for our organisation.
Our appearance: With our new name will be new-look branches, staff uniforms and logos.
- What won’t change:
Your products and services: These will not change, including your accounts.
Your ownership: We’ll remain a 100% customer owned financial institution. Your rights as a member will not change.
Our philosophy: As always, our profits will be used to reward our members and their communities. We’ll continue to provide benefits for our members and community organisations.
It’s an exciting time for us as we begin this important transition for our organisation. We are all working hard to make this a reality. Our Board and Executive team firmly believe that changing to a mutual bank will enhance our market standing and underpin our plans for continued growth and position ourselves as a strong financial alternative.
Later this month we’ll be sending members another letter unveiling our new name and brand, before we release the details to the general public.
For more information, please don’t hesitate to call us, drop in to your nearest branch, or email us at email@example.com
Merger furthers Community CPS’ growth plans
Leading national credit union Community CPS Australia continues its strong record of growth through mergers, with regional Credit Union Alliance One to join the Community CPS Group next month.
Members of regional South Australian Credit Union Alliance One voted on Monday 17 June to merge with Community CPS, effective 1 July 2013, in a vote of confidence in the merged entity’s ability to provide a strong alternative in the banking sector.
Community CPS Chief Executive Officer Robert Keogh said the new entity would result in more than 200,000 members across SA, WA, ACT and NSW, with assets under management of $4 billion.
As one of Australia’s four largest credit unions, the merger positions the Community CPS Group for further growth and reinforces its commitment to regional South Australia. The current branch network will expand from metropolitan Adelaide to Gawler, Port Augusta and now includes Alliance One branches in Clare, Whyalla, Port Lincoln and Roxby Downs.
Mr Keogh said the merger would enable the business to better compete in a challenging financial market for the benefit of all members.
"The Alliance One members have recognised that a larger entity will be able to better invest in providing a wide range of products and services and I’m pleased to welcome them to the Community CPS Group," he said.
"The merger brings together two credit unions with very similar values – both are firmly focused on creating and returning value to members and they both believe in supporting the communities in which their members live and work.
Mr Keogh said the CPS Group had steadily grown over the past four years through prudent management of its business and through mergers, most recently in Wagga and the Hunter Valley.
About Alliance One Credit Union
Alliance One Credit Union provides banking and lending services to northern South Australians through its branches in Whyalla, Clare, Port Lincoln and Roxby Downs. It has 16,000 members, total assets of $233 million and employs 53 staff. For more information visit www.a1cu.com.au.
Mutual Bank Discussion
In 2010 the Federal Government launched the Competitive and Sustainable Banking System. In Stream Two (Support Smaller Lenders to Compete with the Big Banks) of the Program it declared its intentions to ‘Build a new pillar in the banking system by supporting the mutual sector’ and also stated that there were more than 20 credit unions and building societies that met APRA's authorisation guidelines on the minimum capital requirements for use of the term 'bank'. If these institutions apply to use the word 'bank', APRA has advised that it will approve them quickly.
Community CPS is currently in discussions with APRA regarding a transition to a mutual bank designation in the latter part of this calendar year. Under this approach the principle of mutuality will continue to be maintained, which means the mutual bank will be owned by each of the members who are its customers. A transition to a mutual bank designation would also see all Community CPS brands aligned under one brand.
The transition to mutual bank designation would see no change to the organisation’s commitment to servicing its members. The move would enable Community CPS to broaden its reach in the market.