South Australian credit unions Australian Central and Savings & Loans have proposed to merge and create the nation's second-largest credit union.
"If successful, following approval from members of both credit unions, the merger would create the largest member-owned financial institution headquartered in Adelaide with 350,000 members and more than $7 billion in combined assets under management and advice," the two firms said in a statement.
Australian Central has been providing financial planning services since 1986 and has an alliance with National Australia Bank's wealth management division MLC.
The combined credit union will have branches in South Australia, Victoria, New South Wales, Western Australia and the Northern Territory.
"This proposed merger is the result of two like-minded organisations which have recognised that, together, we can position ourselves as a competitive, values-driven organisation capable of reinforcing the benefits we offer to current members," Savings & Loans chairperson Bill Cossey said.
Members of both credit unions will be able to vote on the proposed merger at meetings in November. If the proposal is accepted, the new business, which is yet to be named, would become effective from 1 December 2009.
"The positions of all staff members who directly service members have been guaranteed," the two firms said.
"It is anticipated that while there will be a realignment of some managerial and specialist roles within the organisations, redundancies will be kept to a minimum."
