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.