Heritage Bank, People’s Choice Credit Union set to officially merge to create new national mutual bank

Toowoomba’s Heritage Bank has officially merged with South Australia’s People’s Choice Credit Union, with the new $23bn entity becoming the country’s leading customer-owned financial institution. Here’s what it means for customers.

Toowoomba’s Heritage Bank has made history with the financial institution officially merging with South Australian bank People’s Choice Credit Union to create the country’s largest customer-owned financial institution.

The merger became official as of Wednesday, with the new $24bn entity boasting 720,000 members and 95 branches across Queensland, South Australia, NSW, Victoria and the Northern Territory.

A new name for the merged entity has not yet been revealed, with both banks to trade under their existing names for the next 12 months in an interim period before the bank’s new name is announced.

The merged entity will also retain two head offices, with the Toowoomba Heritage HQ to operate alongside People’s Choice Credit Union’s head office in Adelaide.

Heritage Bank CEO Peter Lock.

The new board will be made up of an equal number of directors from Heritage and People’s Choice.

Chief executive Peter Lock said the new merged financial institution was a new era in the Australian banking sector.

“We’ve brought together two of Australia’s most successful customer-owned financial

institutions to create a strong national mutual alternative to the big banks,” Mr Lock said.

“The reality is Australians only have two choices when it comes to banking – they can go

with a listed bank, which has profit maximisation as its top priority, or they can go for a

customer-owned bank, which is solely focused on meeting the needs of its members.

“This merger establishes a new force in the mutual sector which will reset the way

Australians think about banking and help propel the customer-owned model onto the radar of

banking consumers around the country.

“Combining the best of both organisations enables us to build on our individual strengths

while having greater size and scale to deliver more for members and communities.

“That includes enhanced products, services, digital capabilities and competitive pricing, while

also increasing support for community and environmental initiatives.”