Australian Unity has announced that its wholly owned subsidiary, Australian Unity Bank Limited, has signed an agreement to transfer its banking business to Bank Australia.
The transfer, which is expected to take place late next year, will include all banking customers – 25,000 as at 30 June – alongside their loans, credit cards and deposit accounts.
In an ASX announcement on Wednesday, Australian Unity said that until the transfer is complete, its subsidiary will operate on a “business-as-usual” basis, including continued regulation by the Australian Prudential Regulation Authority (APRA), and deposits will continue to be covered by the Australian government’s financial claims scheme.
As such, there will be no immediate changes for customers, employees, suppliers or stakeholders of the bank.
In explaining the decision behind the move, the ASX-listed company said that Bank Australia is aligned in its values and shared commitment to creating a positive impact
“Bank Australia is a natural home for Australian Unity’s banking customers, and it is well positioned to support them on their continued impact-driven banking journey,” it said.
Moreover, it said that the transaction comes at a time of increased demand being placed on smaller credit unions and mutual banks to operate and remain competitive, with increased investment required, particularly in the digital space.
“Bank Australia can provide Australian Unity Bank customers a strengthened banking experience.”
In announcing the proposed transfer, Australian Unity group managing director Rohan Mead said: “As Australia’s oldest wellbeing company, we have a track record of pursuing opportunities that ultimately improve the wellbeing of our members and customers.
“This transfer will provide Australian Unity Bank customers with the benefits of Bank Australia’s larger customer service footprint, greater digital capability and increased scale, providing long -term sustainability,” Mead said.
Bank Australia managing director Damien Walsh added: ‘‘Bank Australia welcomes the acquisition of Australian Unity’s banking business as a demonstration of continued commitment to mutuality, customer ownership and values-based banking.
“As a strong, resilient customer-owned bank, Bank Australia is proud to support the ongoing needs of Australian Unity banking customers.”
According to Australian Unity Bank chief executive Matthew Ricker, the deal will enable customers to have positive banking experiences as the industry continues to evolve.
“The Australian Unity Bank team has always put customers at the heart of everything we do, and this transfer is a further demonstration of this commitment.”
“The transaction marks the start of Australian Unity and Bank Australia’s commitment to work together and explore a strategic alliance to achieve their joint aim to create positive impact while supporting the wellbeing of all Australians,” Ricker said.
