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ADCU banking on a name change

Announcement posted by ADCU (Australian Defence Credit Union) 01 Dec 2014

Monday 1 December 2014 

Australian Defence Credit Union (ADCU) is set to consult their members on becoming a Mutual Bank. This development was foreshadowed by Chairman of the Board, Rear Admiral Clint Thomas AM, CSC, RAN at their recent Annual General Meeting.

The member vote on ADCU becoming a mutual bank will most likely be made at a Special General Meeting in May of 2015. If passed, it will allow ADCU to incorporate the term bank into its name strengthening its appeal to a new generation of members.

“Becoming a Mutual Bank will allow us to communicate more clearly who we are and what we do. Younger people are less familiar with what a “credit union” is these days whereas the term “bank” is readily understood. The proposed name change is all about removing friction to new memberships” said John Ford, CEO of ADCU.

“ADCU already operates under the Banking Act (1959) and is supervised by APRA as an authorised deposit-taking institution. This means we comply with the same prudential standards as the banks and our members deposits are covered by the Australian Government deposit guarantee. Still, this is a pretty complex story to communicate and we could more readily convey the same message by simply calling ourselves a bank.”

 

“Even though the name of the organisation may change, we have no intentions to demutualise. We will still put our members before profits and remain dedicated to the Defence community” said Chairman Thomas.

The decision to rebrand has been largely driven by Federal Government banking reforms to improve competition in the banking sector. The name change will be subject to approval from APRA (The Australian Prudential Regulation Authority).

This potential conversion of ADCU continues a trend in the mutual financial sector where larger Credit Unions and Building Societies are converting to mutual banks. If APRA approves the name change, ADCU will join other converts to mutual bank status, such as Teachers Mutual Bank, bankmecu, QT Mutual Bank, Hume Bank and Heritage Bank.

About ADCU:

ADCU has been providing banking services to the greater Defence community since 1959. They are an Authorised Deposit Taking Institution with branches on all major Australian Defence bases, over 48,000 members and funds under management of $1.06 billion. ADCU operates in accordance with the Banking Act (1959) and is regulated by the Australian Prudential Regulation Authority (APRA). ADCU takes pride in their reputation for being helpful, reliable, professional and most of all for understanding the needs of the Australian Defence Force.