Five credit unions in New Zealand have signed a conditional heads of agreement to merge their operations into a one unit.
The five credit unions are: NZCU South, NZCU Central, Aotearoa Credit Union, NZCU Steelsands and NZCU Baywide.
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The merger, approved by the respective boards, is expected to generate economies of scale as well as enable the combined entity to better serve the customers.
With nearly 300 staff, the combined credit union is estimated to have NZ$600m ($412.08m) in assets and will cater to around 75,000 member owners.
NZCU Baywide chairman and spokesperson of the merged entity Iain Taylor was quoted by scoop.co.nz as saying: “The scale of the larger credit union will deliver efficiencies, better pricing for savings and lending rates, and reach across the combined nationwide branch network and online.
“It will bring more potential to invest in technology to improve services and wider access to capital for the benefit of member owners.”
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By GlobalDataEarlier this year, all the five entities agreed to implement the same core banking system. The technology is expected to provide the merged entity additional flexibility to expand customer base.
The merger is subject to approval of the respective member communities.
Once completed, the combined credit union will offer home loans, personal loans, savings and investments services. It will also offer insurances for vehicles and transaction account services.
