Defcredit becomes Defence Bank
The Defence Force Credit Union (Defcredit) has this week gained Australian Prudential Regulation Authority (APRA) licensing to become a bank.
Defcredit announced the necessary approvals this week but undertook that it would remain committed to Defcredit's original principles as a mutual or member-owned organisation, rather than being a bank owned by shareholders and driven to make profits to pay dividends.
Commenting on the change, Defence Bank chief executive Jon Linehan said the decision to become a bank was made to enable the organisation to further capitalise on its strong growth, obtain greater access to more diverse sources of funding, and deliver more products and services to members.
"Becoming a bank will also enable the organisation to better compete in the broader marketplace," he said.
"Defcredit has not only managed to thrive in a difficult economic environment, but has more than doubled in size and reserves over the past six years," he said.
"We carried no bad investments in the GFC and have experienced no losses through mortgage defaults. Given this significant growth, our strong financial strength and the emergence of new opportunities in the market, we felt that the timing was right to become a bank," Linehan said.
Recommended for you
Insignia Financial has issued a statement to the ASX regarding a potential bid from a third global private equity business to acquire the firm.
More than 30 advisers fell off the FAR during the Christmas and New Year period, according to Wealth Data, with half of these coming from licensee giant Entireti.
With next-generation heirs unlikely to retain their family’s financial advisers after receiving an inheritance, Capgemini has explored how firms can work with younger generations to maintain a relationship.
The use of technology and data analytics will be a way for advice firms to grow in 2025, according to Adviser Ratings, with those who are using it successfully reporting 10 per cent higher profit margins.
