Gateway Credit Union unveils new customer centric strategy and its financial results

Gateway Credit Union today released its 2014 annual and financial reports and announced a strategic repositioning of the business. The annual report highlights Gateway’s commitment to increasing market share and building profitability, which Gateway believes it will achieve by transforming the organisation from being customer friendly, to customer centric and by becoming the ‘best financial institution in Australia for helping customers pay down debt’.

As part of the organisational transformation, Gateway has appointed Lexi Airey as its first-ever Chief Customer Officer. “A happy and satisfied customer is the best business strategy, so with near 20 years of experience in customer orientated roles Lexi is the perfect fit to lead Gateway’s customer acquisition and customer service and work with our executives to execute against our strategic repositioning,” said Gateway CEO, Paul Thomas.

“At first blush”, admits Thomas, “our strategy to help borrowers pay down debt faster seems like a counter-intuitive strategy for a financial institution which makes money from lending money. However, we believe our success is tied to our members’ success. As a customer centric organisation, putting Members interests before our own, which dovetails with our people before profits philosophy, will pay dividends in the longer term.” 

Gateway’s 2014 financial results reveal double-digit business growth as a mortgage lender, single-digit savings growth as a deposit taker, solid transaction growth as a payments provider and continuing growth in member value as a co-operative institution. Continuing its track record of above system growth, Gateway funded a record number of loans during fiscal 2014 and grew its loan book by 11.7 per cent - above banking system growth. This contributed to the 11.9 per cent rise in total assets – again, above industry growth.

However like all credit unions, Gateway is feeling the effects of margin squeeze brought about by the ongoing price war for loans and deposits, which is reflected in the 31 per cent fall in its profitability over the past year.

Thomas contends that most lenders are reluctant mortgage war combatants who dislike price battles and the need for deep discounts. “But in a market which is being driven by price, lenders are often required to sharpen their pencils to stay in the game”, argues Thomas.

Thomas said that producing record numbers of loans in a price war ‘blood-red ocean’ was a team effort. “I recognise the invaluable contribution of our staff and third party broker distribution partners, Connective, Mortgage Choice and Yellow Brick Road to our success. Since Gateway entered into the broker space near five years ago, these partnerships demonstrate how a smaller, customer centric and more agile ADI can bring greater competition to the marketplace, giving Australians a fairer go.”

ENDS

To view Gateway’s Annual and Financial Report click here  https://www.gatewaycu.com.au/annual_reports.aspx

About Gateway (Gateway Credit Union)

Gateway is one of Australia’s major Credit Unions and has proudly been servicing Australia’s banking needs for more than 55 years. Judged the 2012 Credit Union of the Year by Australian Banking & Finance Magazine, Gateway is serious about providing real choice and value to consumers and maintaining true competition in the market. Gateway is fully owned by its Members and every Member is a customer. So everyone at Gateway benefits from the commitment to great service and great value, including access to competitive home loan, savings and investment products. Gateway goes above and beyond everyday to provide exceptional and personal service. For more information visitwww.gatewaycu.com.au