New bank superpower

Heritage, People’s Choice merger approved

HERITAGE Bank and People’s Choice Credit Union members have voted to approve a merger of the two entities at separate meetings on Wednesday.

The early results from both voting blocks indicate clear approval, with 75 per cent need for the merger to pass.

The final results will be confirmed in coming days.

“This is a milestone moment for the mutual banking sector and will provide existing and new members with a strong alternative to the big banks – an organisation with a national footprint that is owned by members and exists for the sole purpose of serving its members,” Heritage chief executive Peter Lock said.

“Our organisations have a shared purpose – to help members reach their financial goals.

“This merger combines the best of both organisations, enabling us to build on our individual strengths while having greater size and scale to deliver more for members.”

People’s Choice and Heritage are two of Australia’s most successful customerowned financial institutions and the new entity will boast more than 720,000 members, 1900 employees, more than $23bn in assets, and 95 branches across Queensland, NSW, Victoria, South Australia and the Northern Territory.

The merger is expected to make the new entity, which is yet to receive an official title, one of the largest financial institutions in the country. People’s Choice chief executive Steve Laidlaw said the vote was an exciting step to create a leading member-owned banking organisation.

“By combining our highly complementary businesses, we’ll deliver significant member benefits, including enhanced products, services, digital capabilities and competitive pricing through a growing national footprint, while also increasing support for community and environmental initiatives,” he said.

“This is a big win for the mutual sector and significant for the broader banking industry as we’ll be able to provide a strong member-owned choice for consumers.”

The merged entity will continue to operate dual head offices in Toowoomba and Adelaide, with no branch closures as a result of the merger and no redundancies below executive level. From March 1, 2023, the board of the merged organisation will comprise an equal number of directors from People’s Choice and Heritage.

Current People’s Choice chairman Michael Cameron will become chairman of the new organisation, with Heritage chairman Kerry Betros to become deputy chairman. Mr Lock will become the chief executive of the new organisation, with Mr Laidlaw to become the deputy chief executive. Mr Lock will retire 18 months after the establishment of the merged organisation, when Mr Laidlaw will be appointed as chief executive.