The “alliance” – which includes AWA, BDCU, Circle and Service One – has partnered with Bendigo and Adelaide Bank in an effort to achieve greater business growth.
In a joint statement, Bendigo managing director Mike Hirst and Service One chief executive Peter Carlin said the “alliance model” would allow the credit unions involved to “remain independent” whilst positioning themselves for growth in the “changing financial market”.
“Every financial organisation needs a clear plan to grow in the face of increased regulation and new technologies”, Mr Carlin said.
“By working with Bendigo to develop the alliance model we have been able to achieve the best of both worlds for our members and for the communities we serve.
“At the same time, the agreement with Bendigo opens up greater capacity to meet our members’ needs, offer greater competitive choice and provide access to a wider range of services and modern service technologies,” Mr Carlin said.
Bendigo and Adelaide Bank said that under the alliance model, loans and deposits of participating credit unions will be transferred to Bendigo Bank, alliance members will have access to new products and technology, and Bendigo will become the approved deposit-taking institution.
“The Agreement with Bendigo requires approval from 75 per cent of members voting at the respective credit union AGMs on 10 December 2014 and final approvals from APRA and the Federal Treasurer,” Bendigo and Adelaide Bank said.
