here&now

Unseen milestone in merger

We notched up another success in our merger process over the weekend, upgrading the banking platform used by Australian Central to one of the most advanced in the country.

 

While it goes unseen to members, the banking platform is a big part of our operations – it determines what products and services we’re able to offer and is the link between members and their accounts.

 

Savings & Loans and Australian Central currently use different systems and a major step in making the merger a success is bringing these two ‘back ends’ together.

 

We’ve divided the changeover into two components: upgrading the system used by our Australian Central division, which took place on the weekend; and converting the platform used by Savings & Loans, which is a much larger project and will happen later this year.

 

The best news to come from the weekend is that the upgrade happened with very few members noticing any changes. There were a few minor disruptions but scheduling the upgrade for a weekend meant any impact on members was low.

 

Once the integration of the two divisions is complete, we’ll be able to take full advantage of the new technology to improve access for our members and the products we offer.

 

We’ve already introduced some great benefits for members as a result of the merger, including reducing fees and enhancing products (PDF), and the upgrade to our banking systems will open up even more improvements.

 

A lot of the work we’ve been doing since December 2009 will become apparent over the next few months as we announce the products our new credit union will offer and proposed new name, which members will vote on at our Annual General Meeting. We’ve had a lot of discussions with members about both of these important aspects of the merger, and can’t wait to share them with you.

 

Make sure you keep an eye on the Savings & Loans and Australian Central websites for new announcements about the merger.

 

Peter Evers

New campaign to boost our profile

Savings & Loans and Australian Central have joined with credit unions and mutual building societies from around Australia in a new campaign encouraging people to switch from banks.

The campaign, which starts with TV, online and press advertisements this week, focuses on the core idea of credit unions – that everything we do comes back to our members.

More than 4.5 million Australians bank with credit unions and building societies, who focus on giving back to our members and the community rather than boosting profits for shareholders.

Just a couple of weeks ago new research came out showing that Australians are increasingly unhappy with the big banks, and we’re hoping that this new campaign will boost the profile of credit unions and building societies in the wider community.

More than 80 credit unions and building societies have joined forces to promote this campaign, which is organised by our industry body Abacus – Australian Mutuals.

While we’re all separate organisations, we all believe in the importance of putting our members and the community first and are working together to show people that there are plenty of good alternatives to the banks.

We’ll be using this logo on some of our advertising and flyers to show that we’re part of a group that’s committed to better banking for all Australians. This isn’t our new name or logo, which we’re currently working on to be presented to members later in the year for their approval.

Here are some quick facts about credit unions and mutual building societies:

• Together we have more than $73 billion in assets and are the fifth-largest holder of household deposits in Australia
• More than 20% of all Australians are members of a credit union or mutual building society
• Just like the banks, we’re Authorised Deposit-Taking Institutions, regulated under the Banking Act and we’re overseen by APRA to ensure we make prudent decisions
• Customer satisfaction for credit unions and mutual building societies is 14-16% higher than the major banks (Roy Morgan Research, February 2010)

If you want to find out more about the campaign, visit www.comesbacktoyou.com.au

Woolworths reducing card choice

Members – and millions of other Australian consumers – should be aware of a move by Woolworths to restrict the use of Visa Debit cards across their retail empire later this month. From 15 April, Woolworths’ outlets (which include Big W, Woolworths Supermarkets, Safeway, BWS, Dan Murphy’s, Dick Smith and Tandy) will start banning customers from selecting the ‘credit’ option when using a Visa Debit card to pay for their purchases.

Millions of Australians use Visa Debit cards to help minimise transaction fees and all Savings & Loans members currently receive unlimited free ‘credit’ purchases using their Visa Debit card. By only allowing Visa Debit card users to select ‘savings’ or ‘cheque’, Woolworths will be forcing many of its customers to pay extra to buy their groceries.

Without getting too technical, Woolworths will only process Visa Debit purchases through the EFTPOS network, of which it is a part owner. The move not only limits consumers’ choice, but also works out better financially for Woolworths.

Woolworths – one of Australia’s biggest companies – is using its market dominance to tell you how to pay for your shopping.

If you haven’t used one before, a Visa Debit card gives you all the convenience of a traditional credit card, but using your own money. This means that you can use your card to buy things online, over the phone and to buy your groceries (at least, anywhere that isn’t owned by Woolworths after 14 April). It’s a great way of giving people access to their money however they want it, without the risk of going into debt.

The ban only extends to Visa Debit cards, not credit cards. Woolworths has previously launched its own credit card, which will also not be affected by the ban.

There isn’t much we can do to change Woolworths’ decision, but there are a few ways to avoid any fees for using the ‘savings’ or ‘cheque’ option with your Visa Debit card:
• Withdraw money from a rediATM before going shopping – there are over 3,200 rediATMs around Australia
• Think ahead – if you have to use ‘savings’ or ‘cheque’, take some cash out so you don’t have to perform another transaction
• Consider taking out a Visa Credit card – this isn’t the right option for everyone but interest free periods are available and you can ‘pre-load’ the card with your own money if you’re worried about credit cards

We’re working with our industry group to help ensure that Australia’s payment system remains fair and our members can continue using their money however they want to.

Merger process in full swing

The merger of Savings & Loans and Australian Central is proceeding well, with the integration project on time and on budget. From a member’s perspective, it might look like very little has happened, but we’re laying the foundations for some significant changes that will become apparent over the next 6-8 months.

Here I’ll give you a quick run-down of some of a few of the bigger tasks since the legal merger in December, and what that means for how the new credit union will operate.

Product review

Every product and service offered by our two credit unions is being reviewed so we can establish what we’ll be offering to members once the integration is complete. Savings & Loans and Australian Central worked on slightly different models and the review will help us determine how we can meet our members’ needs in the new credit union.

Research

We’ve spoken with groups of members and non-members about Savings & Loans and Australian Central, what they thought of us as separate credit unions, what they want from the merger and how we can improve. This research will form the basis of a lot of the decisions we make in the coming months, including the way we look, how we’ll talk with our members and what products we’ll offer.

Branding and name

After a lengthy process, we’ve appointed an agency to help us develop our new name and brand. The group we’re working with, Futurebrand, has been involved with some of Australia’s best-known brands, including One HD, BHP Billiton, Yellow Pages, the Sydney Olympics and RMIT University.

Groups of members will be consulted throughout the process of developing the new name and brand, with all members having the opportunity to vote on the final name at our Annual General Meeting later in the year.

Computer systems

One of the biggest parts of the integration project is bringing together the different computer and banking systems currently being used by Savings & Loans and Australian Central. Changing banking systems is a massive endeavour, and we’ve spent a lot of time evaluating the various options available to us and what they mean for the way we can serve our members.

The systems we’ve chosen to use for the new credit union will combine the best elements currently used by Savings & Loans and Australian Central. Our core banking system – basically, the hub of all of the other systems – will be a new version of the system currently used by the Australian Central division.

Using the newest technology available means we’ll be able to help our members in more innovative ways than either credit union could previously.

Branches and locations

No decisions have been made regarding the locations of new branches, and we remain committed to not withdrawing ourselves from any locations that Savings & Loans or Australian Central currently operate in. We are still considering opening up to four new branches in South Australia within the next 18 months, along with other locations.

So while you might not be seeing a lot of changes from the outside, there is a lot of activity across both of our divisions to make sure this merger brings real benefits for our members.

Peter

Welcome to 2010

Welcome to 2010. It’s sure to be a busy year for the credit union and our members, and we’ve already hit the ground running.

Since the official merger on 1 December we’ve been working hard to start the process of bringing together the two divisions of our new credit union. Our members have shown overwhelming support for the merger, and have had plenty of questions about what changes they’ll see by the end of the year.

The short answer is that we know a lot will change, but the exact changes and timing are still being discussed. While few details have been decided, we do know that our new credit union will have an increased ability to help our members.

A great opportunity

The new credit union – which will be named later this year – will be operating in a unique landscape that will give us some fantastic opportunities to develop ties with new communities and new members. We have the chance to create something new; something that honours where we’ve come from, while having the freedom to start afresh.

Once the merger is complete we’ll have a credit union that has a better capacity to help members over a range of life stages and lifestyles, but stays true to what credit unions are.

I really want both members and non-members to gain a better understanding of what it means to be part of a credit union. The vast majority of new members come to us because of the products we offer, not because of who we are or the way we treat our members. It’s only when people become members that they begin to understand our ethos and really value our focus on them as members and owners, rather than customers.

Member centricity

Everyone in our credit union – from the Board of Directors to the staff in our branches – is passionate about putting our members at the centre of what we do (to paraphrase some Australian Central advertising). Our current members understand this, but we want non-members to know this too – we want to become synonymous with friendly, personalised banking that benefits everyone and offers a range of people the products they desire.

This idea of ‘member centricity’ is about examining every part of our credit union and every decision we make from our members’ perspective. Thinking about how decisions will impact members is always important within credit unions, but it’s going to be vital as we make decisions big and small over the next few months.

Changes

While our members will see a great deal of changes over the next 6-12 months, the truth is that we’re always changing. Our members and the wider market demand new products, new ways of doing business, new tools for them to access us and their money. If we never changed then we wouldn’t have many of the things we now have: Visa cards, Internet Banking, even accepting members outside of certain industry groups or unions.

Once our two divisions are integrated, our members will have access to an improved range of products, more branches and the same service and value they’ve come to expect.

It’s certainly going to be a busy year.

Peter Evers
Chief Executive