goGreen® Car Loan
In Australia, transport is a significant contributor to total greenhouse gas emissions, making up 15.65% in 2010 up from 14.6% of emissions in 2008 (link to http://www.climatechange.gov.au/en/climate-change/emissions.aspx). bankmecu recognises a need to reduce the impact indirectly caused by motor vehicle financing. As a result, bankmecu developed the award winning goGreen® Car Loan.
The goGreen® Car Loan encourages people to purchase more environmentally efficient cars. bankmecu also offsets the greenhouse gas emissions produced by the car, based on average annual vehicle greenhouse gas emission figures provided by Landcare Australia in 2010 for the term of the loan. Refer to Chapter 8 ‘bankmecu’s Conservation Landbank’ for further information on goGreen® Car Loan carbon offsetting.
In 2010/11 639 goGreen® Car Loans were funded compared to 889 in 2009/10. Accumulatively, these loans totalled $12,506,016 with the average balance decreasing from $23,863 to $19,571. The goGreen® Car Loan rate is being reviewed to ensure the product remains competitive.
Figure 7c: Annual goGreen® Car Loans funded 
goGreen® motor insurance
In partnership with Allianz, bankmecu’s insurance underwriter, customers can purchase goGreen® Motor Insurance.
Reduced premiums are calculated on the basis that the car insured will be driven by no more than two nominated drivers who are 25 years or over and will not be driven more than 10,000 kms during the period for which it is insured.
goGreen® Home Loan
Homes constitute the largest purchase most people will ever make and involve a wide range of economic, environmental and social impacts. Homes are responsible for approximately 13% of Australia’s energy use and contribute approximately 10% of Australia’s greenhouse gas emissions.
Source: http://www.climatechange.gov.au/what-you-need-to-know/buildings/homes.aspx
Using the Government accredited Nathers rating scheme http://www.nathers.gov.au/, homeowners can have their home energy audited for a few hundred dollars. The report will provide an energy rating for their home and recommendations to improve the rating.
Homes rated 7 stars or more qualify for bankmecu’s goGreen® Home Loan, which offers all the same benefits as bankmecu’s Premium Home Loans, but with an even more competitive interest rate. The reduced interest rate provides an incentive to customers to purchase more energy efficient homes.
bankmecu provided 19 goGreen® Home Loans in 2010/11 with a total balance of $4,922,704 (average $259,090).
goGreen® Home Improvement Loan
bankmecu’s goGreen® Home Improvement Loan offers a discounted interest rate on loans for the purchase and installation of environmentally friendly features into a home. This loan product was created to encourage people to install features in their homes, including but not restricted to solar panels and wind electricity generation, grey water recycling systems, insulation and rainwater tanks.
bankmecu provided 44 goGreen® Home Improvement Loans in 2010/11 with a total balance of $373,707 (average $8,493).
Premium First Home Buyers Loan
bankmecu’s Premium First Home Buyers Loan offers a low variable interest rate for people who qualify for the First Home Owners Grant. It allows first home buyers to borrow up to 95% of the valuation amount.
The loan was introduced to assist first home buyers who are struggling to enter the property market due to problems with housing supply and affordability.
The Australian Bureau of Statistics (ABS) reported in May 2011 that the number of first home buyer commitments, as a percentage of total owner occupied housing, fell from 15.8% in April 2011 to 15.4% in May 2011 (http://www.abs.gov.au/ausstats/abs@.nsf/mf/5609.0).
In 2010/11 bankmecu advanced 249 loans to first home buyers totalling $71,419,032. This equates to 16.8% of total home loan funding.
Environmental loan repayment pause
In 2008/09, bankmecu introduced an environmental home loan repayment pause for those customers currently servicing a loan who wish to make energy and water efficiency improvements to their home. Existing borrowers are able to delay home loan repayments for three months or halve repayments for six months to enable the purchase of home improvements that will increase the energy and water efficiency of their home. bankmecu is not aware of any other financial institution offering this feature anywhere in the world.
bankmecu approved eight environmental loan repayment pauses in 2010/11, saving customers over $45,000 in loan repayments that were diverted to home improvements.
Loan repayment pause
To ease the burden on growing Australian families bankmecu introduced a family loan repayment pause for a number of home loan products. The feature allows customers to defer payments on their mortgage for up to three months or reduce mortgage repayments by half for up to six months when a new child comes into the family.
bankmecu approved 40 loan repayment pauses with an average deferment in repayments of $6,900 per pause.
Biodiversity offsets for new home construction loans
In 2008/09 bankmecu introduced the provision for a biodiversity offset for new home construction loans. The bankmecu Conservation Landbank allows bankmecu to offset the loss of biodiversity resulting from new homes financed by bankmecu. Refer to Chapter 8 ‘bankmecu’s Conservation Landbank’ for further information on biodiversity offsetting.
In 2010/11, bankmecu provided 137 biodiversity offsets equating to 95,718 square metres and a loan value of $37,553,099.
bankmecu VISA credit card
bankmecu has two credit card offerings:
- The low rate VISA credit card which offers a low interest rate with an annual fee is suitable for customers who maintain an outstanding balance each month.
- The 55-day interest free VISA card with no annual fee is suitable for customers who pay off their outstanding balance each month.
bankmecu provided 311 low rate Visa credit card accounts with total limits of $1.6m (average limit $5,144) in 2010/11 and 1,870 55-day interest free credit card accounts with total limits of $7.8m (average limit $4,175) in the same period.
Environmentally responsible plastic cards
bankmecu was the first financial institution in Australia to launch a credit card using PETG plastic, as the result of a pilot program led buy Cuscal and Placard. The use of PETG rather than PVC enables the virtual elimination of chlorine and a range of other highly toxic chemicals from the card production process.
As at 30 June 2011, bankmecu had approximately 12,000 chip credit cards made out of PETG plastic. The majority of bankmecu’s 70,000 debit cards are also now chip cards made out of PETG plastic.
Further development has been undertaken in conjunction with Cuscal and Placard to test PETG as being suitable for Paywave contactless and the next generation of chip technology (DDA chip). Results were positive and bankmecu plans to convert the entire VISA card portfolio to the new DDA chip within 2 years.
100% No More Marketing Guarantee
bankmecu provides all customers with a credit card with a 100% No More Marketing Guarantee, meaning that the Company does not offer unsolicited credit limit increases, or encourage card holders to increase their credit limit or level of spending. Customers investing money with bankmecu know that when their funds are used to finance credit card debt this is done so responsibly.
Banking for students
bankmecu's research amongst the youth market (15 years - 25 years) revealed that younger customers valued:
- pricing benefits, and
- responsible brands.
bankmecu’s mySaver product was launched in 2005/06, offering customers aged up to 25 years incentives to save with bonus interest rates and transaction fee rebates.
As at 30 June 2011, there were 10,276 mySaver accounts with a total value of $14,376,847.
Affordable housing finance
Access to safe, secure and affordable housing is an issue of material importance to bankmecu customers and Australian society. bankmecu is working with the community housing sector to provide finance suited to their needs. Refer to Chapter 9 ‘Investments in housing’ for more information on bankmecu’s relationship with the community housing sector.
As at 31 July 2011 bankmecu loans to the affordable housing sector totalled $64.8m.
Note: In future years, end of financial year figures will be reported.
Community sector banking
Many community sector organisations share much in common with bankmecu, including values and a sense of social and environmental purpose. bankmecu is committed to meeting the banking needs of this sector, which includes Government agencies, schools and a host of Non-Government Organisations.
Customers from the community sector now represent 14 of bankmecu's 20 largest investors. bankmecu anticipate the value of this customer segment will increase in coming years as a team of dedicated Community Banking staff seek to meet the sector's growing need for mission driven competitive investment.
The total value of Community Sector Banking as at 30 June 2011 was $359,052,820. This equates to an increase of 50.3% compared to the same time last year.
Exemptions from fees and charges
bankmecu has an exemption from fees and charges for customers who represent an organisation or group that is recognised by the Australian Taxation Office as a not-for-profit organisation and operates a Community Access Account with a balance of $100,000. bankmecu also exempts fees and charges for any customer who cannot conduct their normal banking due to a disability. Periodic emails are sent to staff to serve as a reminder to inform customers of their eligibility for an exemption from fees and charges.