Credit union eyes second tier
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BN
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27/07/2010 5:25:00 AM
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Credit Union Australia has flagged its intention to double in size within five years, as it seeks to exploit a narrowing of market competition to join the banking second tier.
The Australian Financial Review reports the group will boost its marketing budget by 50% this year, as well as investing in organic growth, mergers and systems efficiency.
The group offers mortgages at an average of half a percentage point below the major banks, and currently has a $7.8bn mortgage book.
CUA's chief executive Chris Whitehead told the AFR that major banks had sought safety in deposits and mortgages during uncertain times, which are still the focus of credit unions and mutuals.
"We have outperformed [against major banks] on quality of assets and lower arrears throughout the crisis, which reflects our commitment to customers in not giving them loans they can't afford," he said.
The group is currently merging with Melbourne-based Plenty Community Credit Union.
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