Mutual lenders in merger discussion

by Julia Corderoy10 Aug 2016
Two mutual lenders are in discussions to merge in a bid to target Australia’s growing Information Communications Technology (ICT) sector.

Mutual lender and ICT specialist lender, Intech Credit Union, is recommending its members support a merger with Bank Australia. It argues that as a division of Bank Australia, Intech Bank will be able to deliver more competitive pricing, an expanded range of products and services, and the opportunity to achieve long term sustainable growth.

Once supported by Intech’s customers, the formal merger of the two organisations is expected to be completed in early 2017.

Intech CEO Robert King said the strategy is to use Bank Australia’s resources and customer owned banking expertise to assist it reach out to greater numbers of people working in the ICT sector.

“Achieving additional scale through this merger provides Intech the opportunity to accelerate its own growth agenda by ensuring our members continue to receive highly competitive products and a first rate service offering,” he said. 

“We have been successfully growing Intech’s presence amongst the ICT sector in both Sydney and Melbourne where Bank Australia is head quartered and a merger with Bank Australia will further assist our efforts.”

Bank Australia CEO Damien Walsh announced Bank Australia plans to open a new flagship branch in Sydney’s CBD prior to Christmas, to coinciding with the decision.

“This merger reflects our ambition to achieve greater scale through both our already strong organic growth and strategic mergers which represent value to our customers,” Walsh said.

“Bank Australia customers come from all walks of life including science, research and education all of which closely align to the ICT sector.”