Credit Unions and Building Societies Join Forces

24 March 2006

A new group is being formed to represent the interests of 4 million Australians who are members of credit unions and mutual building societies across Australia.

The Credit Union Industry Association (CUIA) and the Australian Association of Permanent Building Societies (AAPBS) have reached agreement to form a new joint venture to promote the mutual financial services sector.

The new body will represent over 150 credit unions and building societies from across Australia with over $50 billion in combined assets. The institutions are owned by more than 4 million members.

General Manager of the CUIA, Adrian Lovney, said the agreement is recognition of the opportunities to promote the common interests across the mutual sector, and the importance of a strong voice in representing the interests of members to government and regulators.

“This is the first substantial change in the representation of the mutual sector in over 10 years, and is particularly important now as member-owned financial institutions are fewer in number but representing more members and assets.”

The agreement to form the new joint venture follows the establishment of the Mutuality Forum late last year representing mutual financial services organisations in their battle to protect the privacy of member registers. The group made submissions opposing a draft ASIC policy on the issue, and is continuing to press for reform to ensure that members of mutuals are afforded the same protection in a hostile takeover as members of public companies, and that the privacy of their personal details are protected.

“We worked well on these matters, believe we are making some progress, and that we can better represent both credit unions and building societies by coming together,” Mr Lovney said.

“Our shared goal is to build the voice and visibility of the mutual sector in which credit unions and mutual building societies are working for the benefit of their members, with profits returned to members through the services, and products offered.”

Chairman of the AAPBS, Wayne Morris, said the mutual sector is strong and this move will serve to capitalise on future opportunities.

“We are seeing strong identification among members with the values of mutuals – service, fair fees and community-focus,” Mr Morris said. “We are confident of an exciting future for the sector, and the joint venture is a positive move to build on that future and to protect those values.

“Our combined strength, particularly in regional areas, will ensure that the interests of 4 million Australians are heard loud and clear on critical issues which affect the way they choose to look after their personal finances.”

The joint venture will commence operations in July.