HomeView 2014 Media ReleasesCOBA raises questions about Bendigo proposal

The Customer Owned Banking Association today encouraged customers of four credit unions not to support a proposed “alliance” with Bendigo and Adelaide Bank before answering a series of questions about the transaction.

Under the proposal, Bendigo will gain $640 million in assets and $550 million in deposits, while the four credit unions – AWA, BDCU, Circle and Service One - will lose their banking licences and become a distribution channel for products of a listed bank.

COBA said customers should consider the risk of giving up a values based business model that puts customers and communities first, by voting to bank with a listed bank.

“Credit unions, like all customer owned institutions, exist for their customers, offering affordable, responsible and sustainable banking services and giving back to the communities where they do business.

 “We respect the right of these institutions to take this proposal to customers and the independence of these credit unions’ customers, as owners of the businesses, to make their own decisions,” Acting CEO Mark Degotardi said.

“However, we are disappointed that these organisations didn’t pursue collaboration opportunities that would have allowed them to remain part of the customer owned sector.”

Customers of these four credit unions should consider these questions:

  • Are you in any way financially better off under this proposal?
  • What interest rate will you be paying on your loan once the lender is a listed bank?
  • What are the fees and charges under your new banking arrangements?
  • Do you understand the credit union you chose for your banking will cease to exist under this deal?
  • Are you happy for your loans and deposits to boost the balance sheet of a listed bank?
  • Has your credit union considered all strategic options, including merging with another customer owned banking institution?
  • Are you aware of the implementation costs of this deal and that it is a new and untested business model that may not succeed?

"COBA strongly believes that customers are best served by customer owned banking institutions – mutual banks, credit unions and building societies – not franchises of listed banks.

"If customers don’t have satisfactory answers to these important questions, they should not support the proposed transaction at credit union AGMs on December 10.”   

For more information please contact:

Daniel McDougall, Senior Manager – Media and Communication
02 8035 8444 or 0407 637 541, This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Customer Owned Banking Association is the industry body for credit unions, building societies, mutual banks and friendly societies.  See coba3.nexusone.com.au

Download PDF release here118.21 KB

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Media Contacts

Mick Gibb
Corporate Affairs Manager
P: +61 2 8035 8444
M: +61 423 149 494
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