On 1 September, mecu will become Australia’s first customer owned bank. While it’s a significant development for the organisation and the industry, mecu sees it as an evolution in the long history of an organisation that exists for the benefit of its customers who are also its owners.
The first financial cooperatives were called ‘people’s banks’ and were formed in the 1850s in Europe to help poor rural communities gain access to finance. Bringing people together to pool their money allowed these banks to provide loans and generate interest and profits, giving their communities a chance to grow and develop.
This same philosophy and way of doing business still drives mecu today, and will continue to do so in the future. We call it responsible banking.
Responsible to our customers who are also the owners of mecu
mecu’s cooperative structure means that you as customers also own the business. We are therefore accountable to you and your interests, and we take this responsibility very seriously.
This means ensuring that mecu is financially astute and secure for the long term. In the financial year to 30 June 2011, mecu reported a record profit, which is held as reserves for all customers. This has also allowed us to return more than $31 million to our customers in interest rate and fee benefits, making mecu customers better off by an average of $231 than if they banked with a major bank.
In the same year, we have seen the major banks increase their market share in the wake of the Global Financial Crisis. To stay strong in the face of this fierce competition, mecu needs to attract customers who are looking for a secure and more responsible alternative to the big four banks.
Our research has shown that many people, especially those who have not grown up banking with a credit union, often struggle to understand what a credit union is. As a result, they choose to bank with a bank, simply because they are more familiar with the term ‘bank’.
Over the past few months, mecu has pursued an opportunity created by the Australian Government’s banking reforms – in particular, its invitation for a small number of Australia’s largest credit unions and building societies to apply to the Australian Prudential Regulation Authority (APRA) to use the term ‘bank’ in their name. In July, APRA approved mecu’s application.
bankmecu – a change in name, not in substance
From 1 September, mecu will adopt the business name bankmecu and become Australia’s first customer owned bank. This does not change our cooperative philosophy or ownership, our values, culture, our products or the personal customer service that we pride ourselves on.
In forums to be held around the country during August, mecu customers will have the opportunity to speak with the executive team and Directors in person about this new phase in our organisation’s history, and ask a range of questions about customer owned banking. Find your nearest forum at mecu.com.au/bankmecu
Customer owned banking is about offering respectful, personal service and returning profits to customers in the form of lower fees and better rates. But most of all, it’s about being responsible to customers because they are also our owners. In all these important ways, bankmecu will honour a tradition of people coming together to create growth and prosperity for themselves and their communities.
More information about bankmecu and customer owned banking is available at mecu.com.au/bankmecu, where you can also ask questions, view customer forum details and provide your feedback.
Watch the related video here.
Helen Clarke
Acting Chair