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

Blog post – Community Lottery delivers for non-profits

As credit unions, both Savings & Loans and Australian Central have a long history of community support. We both contribute to the Credit Union Christmas Pageant, one of the nation’s greatest family events, and support local sporting teams, community groups and charities.

We don’t see these activities as donations or expenses, but as investments in our community; investments that pay dividends through creating a more vibrant, happy and healthy society.

One of Australian Central’s major community investments is the Australian Central Community Lottery, a unique program that will deliver up to $1.4 million to a range of charities, not-for-profit groups and sporting clubs in 2010.

The Australian Central Community Lottery provides groups with a chance to be part of a lottery with over $280,000 in prizes – well beyond the capabilities of most community organisations. Australian Central and our business and media partners supply all of the prizes for the Community Lottery, as well as the tickets, promotional material and opportunities to sell the tickets in prominent locations.

Tickets for the Community Lottery are $2 each, with the charities and clubs keeping 100% of the proceeds of ticket sales. We’ve distributed 700,000 tickets to hundreds of groups, ranging from regional social clubs to The Smith Family, one of Australia’s largest charities and Savings & Loans’ major charity partner.

So why do we support the Australian Central Community Lottery?

Well, we know that our community wouldn’t be as strong or vibrant as it is without the thousands of sports teams, community groups, charities and social clubs right across the country. They provide support to those who need it, keep us fit and healthy and care for the vulnerable.

We also know that while these groups need money to continue doing their great work, it’s difficult to continually ask their volunteers to fund them. Through the Australian Central Community Lottery we give volunteers the chance to raise money for their club without dipping into their own pocket.

The Australian Central Community Lottery was expanded this year to include a special allocation of tickets to groups and clubs associated with Savings & Loans. And we’re looking into expanding the Community Lottery outside of South Australia and the Northern Territory to help even more community groups raise much-needed funds.

Time’s running out to buy tickets for this year’s Australian Central Community Lottery, with sales finishing at the end of June. To find a participating group in your region and buy last minute tickets, visit the Australian Central website.
 
Peter Evers

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

Merger gets underway

Hello and welcome to my first blog post. I can’t say that I’ve ever used a blog before, so this is a new experience for me.

I’m delighted to be Chief Executive of the new, merged credit union and I’m looking forward to the challenge of bringing together each of the two credit unions with over $3.5 billion each in assets under management and advice. It won’t be an easy job, but we have some fantastic staff working on the project and I’m sure the transition will take place with very little disruption to members.

I’d also like to take this opportunity to thank and farewell Greg Connor, the CEO of Savings & Loans, who started this blog and was a regular contributor.

Prior to my current position with our new organisation, I was Managing Director/Chief Executive at Australian Central for 9 years, and had been with the credit union for 22 years in total. I’m passionate about the principles of mutual banking and the benefits credit unions can bring to our members.

It’s been a big two weeks for everyone at Savings & Loans and Australian Central since our members approved the merger at our respective Annual General Meetings on 27 November (the merger legally took effect on 1 December). We’ve now started working on the huge project of integrating our two credit unions.

As we work through the integration, I know that we’ll learn a lot about the way each credit worked independently before the merger and focus on what worked most effectively. This means that we’ll be able to take the best of each credit union and provide members with improved products and services.

A good example is Savings & Loans’ eStatement service. Almost 15,000 members have signed up to eStatements and I’m sure this number will increase once all members of the new credit union have access to it. This is something I’ve been interested in implementing for some time, and I expect that we’ll be able to offer this to Australian Central’s members soon after the integration of our systems. There are many similar examples across both organisations, where we will be able to combine our knowledge for the best outcome for members.

We’re already expanding some of our community development programs to cater to the increased size of our new credit union. The Australian Central Community Lottery has more tickets available for community groups associated with Savings & Loans to sell this year, helping them share in over $1m to be raised through next year’s lottery.

As well as the merger project and our day-to-day operations, our staff and members have also been getting right into the festive spirit by helping those most in need at this time of year. This demonstrates the quality staff we have working for us. Despite the merger, they are still thinking about giving back to the community and doing their bit to help out during the festive season. Savings & Loans’ staff and members have been volunteering their time and donating presents to the Smith Family and Salvation Army, while Australian Central’s staff have been collecting presents and food to be distributed by United Way.

It’s fantastic to see our credit union community supporting others and it fills me with an enormous sense of pride. That’s exactly what credit unions are about and something our new credit union will continue well into the future.

It has been a big year for everyone involved with both Savings & Loans and Australian Central, with an even bigger year to follow. This time next year, I hope that we will have a new credit union under a new name, containing the best of both proud organisations.

I wish you and your families all the best over the festive break, and hope you have a prosperous new year.

Peter Evers
Chief Executive