Customer-owned credit union takes on banking

Credit union Mecu is hoping to provide more competition to the major banks after being granted permission from APRA and the RBA to call itself a bank. 

From today it will start trading as Bankmecu. 

It hopes to attract business away from the major banks by emphasizing that it is owned by its customers and is not beholden to shareholders. 

It quotes a November 2010 poll conducted by Essential Media Communications showed that 37% of customers of the Big Four banks had considered leaving and finding a new financial institution. 

“Unlike other banks who distribute profits among a small group of shareholders, Bankmecu’s profits stay with our customers who are also the owners of our business,” says incoming Bankmecu CEO Damien Walsh. 

“Australians deserve a better deal and are looking for more competition in banking, which is why Bankmecu welcomes the government’s introduction of the ‘tick and flick’ program that will make it easier for people to switch banks. 

“Being a bank also allows us to reach out to a new group of younger customers for whom the idea of a customer-owned bank appeals. 

The bank has 25 service centres, most of which are in Victoria, and has 135,000 customers. 

It has assets in excess of $2.6 billion and $287 million in capital. 

Following its launch in Melbourne, Bankmecu has also announced that $137,000 (4% of its annual profits) will be allocated to projects that create positive social, environmental and economic benefits.

Mecu dates back to the 2003 merger between Members Australia Credit Union and Education Credit Union, and the name is an acronym for Members and Education Credit Union Limited. Over the years it has acquired several other credit unions, including the Dependable Credit Union and the APESMA Professionals First Credit Union.