here&now

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

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

A new chapter for Savings & Loans

Savings & Loans’ merger with Australian Central Credit Union was approved by our members at our Annual General Meeting this afternoon, marking the beginning of a new chapter for Savings & Loans.

Staff at both credit unions are working hard at the moment to finalise the legal merger, which will occur next Tuesday, 1 December. From Tuesday, all current Savings & Loans members will become members of Australian Central and their share will be transferred automatically. The new credit union will eventually have a new name, but will initially operate under the Savings & Loans and Australian Central brands.

So what differences will you see now that the merger has been approved? In the short term, very little will change. Members will continue to access their accounts the same way and all passwords and PINs will remain the same. There are some immediate benefits we will be passing on to members, for example small reductions in the fees associated with our Retirement & Pension account as well as a higher interest rate to align it with Australian Central’s Club 55 Account.

While we’ve merged in a legal sense, it will be some months until Australian Central and Savings & Loans members will be able to use the other credit union’s branches, as we operate on different computer systems.

Looking a littler further ahead, work will soon get underway on developing a name, brand and identity for the new credit union.

There are a host of other decisions to be made over the next few months, including which products the new credit union will offer, which building will house the head office and what the growth strategy will be going forward. These are all important decisions that will take some time to finalise.

As soon as decisions are made, we’ll let you know what they are and what they mean for you. You’ll be given plenty of notice about any changes to your accounts and members’ interests will always be the most important factor in any decision.

This is a bittersweet moment for me, as I will not be going forward with the new credit union. After nine years at Savings & Loans I know that our staff are committed to serving their members and that this will continue with the new credit union.

Peter Evers, current Managing Director of Australian Central, will lead the new credit union. Having known Peter for many years, I know he is committed to the principles of mutuality and returning value to members. Under his leadership your credit union will continue to thrive well into the future.

The new credit union will continue to provide you, and hundreds of thousands of other Australians, with a competitive alternative to the big banks.

Greg Connor