Credit union consolidation continues
Consolidation in the credit union sector is continuing with the proposed merger of the second and third of Australia’s largest credit unions, Savings & Loans and Australian Central.
The South Australian-based firms will put the proposed merger to members to vote on at a meeting in November. It was also in November last year that Savings & Loans merged with the Austral Credit Union.
Savings & Loans and Australian Central bring to the table similar books, with both quoting more than $3.7 billion in assets under management and advice, around 30 branches each, and between 530 and 550 staff. Meanwhile, Savings & Loans has 190,000 members to Australian Central’s 166,000.
The combined entity will have around 350,000 members and $7.4 billion in assets under management, but that will not be enough to topple Credit Union Australia from its position as Australia’s biggest credit union.
Savings & Loans and Australian Central are currently Australia’s second and third biggest credit unions, and a merger of the two would place it firmly in second place.
If the proposal is accepted by members the new business would become effective from 1 December this year.
The chairmen of the two groups said very little would change for members, apart from a new name and broader offering.
A statement from the two groups said while there would be job losses relating to some “managerial and specialist” roles, the roles of staff who directly service clients would be guaranteed.
Savings & Loans has eight planners and two consultants in its financial planning operations.
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