Members vote to approve Heritage Bank, People’s Choice Credit Union merger

What started as Toowoomba Permanent Building Society in 1875 has risen to become one of Australia’s largest lenders with more than $23 billion on its balance sheet. Here’s what the merger vote means.

Heritage Bank and People’s Choice Credit Union members have voted to approve a merger of the two entities at separate meetings on Wednesday.

The early results from both voting blocks indicate clear approval with 75 per cent need for the merger to pass.

The final results will be confirmed in the coming days.

“This is a milestone moment for the mutual banking sector and will provide existing and new members with a strong alternative to the big banks – an organisation with a national footprint that is owned by members and exists for the sole purpose of serving its members,” Heritage CEO Peter Lock said.

“Our organisations have a shared purpose – to help members reach their financial goals.

This merger combines the best of both organisations, enabling us to build on our individual strengths while having greater size and scale to deliver more for members.”

Heritage bank merger. People’s Choice CEO Steve Laidlaw and Heritage CEO Peter Lock.

People’s Choice and Heritage are two of Australia’s most successful customer-owned

financial institutions and the new entity will boast more than 720,000 members, 1900 employees, over $23 billion in assets and 95 branches across South Australia, Victoria, New South Wales, Queensland and the Northern Territory.

The merger is expected to make the new entity, which is yet to receive an official title, one of the largest financial institutions in the country.

People’s Choice CEO Steve Laidlaw said the vote was an exciting step to create a leading member-owned banking organisation.

“By combining our highly complementary businesses, we’ll deliver significant member benefits including enhanced products, services, digital capabilities and competitive pricing through a growing national footprint, while also increasing support for community and environmental initiatives,” he said.

“This is a big win for the mutual sector and significant for the broader banking industry as we’ll be able to provide a strong member-owned choice for consumers.”

Heritage Bank building in Toowoomba will be retained as part of the merger.

The merged entity will continue to operate dual head offices in Toowoomba and Adelaide, with no branch closures as a result of the merger and no redundancies below executive level.

From March 1, 2023, the Board of the merged organisation will comprise an equal number of directors from People’s Choice and Heritage.

Current People’s Choice chairman Michael Cameron will become the chairman of the new organisation, with Heritage chairman Kerry Betros to become deputy chairman.

Current Heritage CEO Peter Lock will become the CEO of the new organisation, with People’s Choice CEO Steve Laidlaw to become the deputy CEO. Mr Lock will retire 18

months after the establishment of the merged organisation, when Mr Laidlaw will be appointed as CEO.

The new organisation will continue to operate under the existing brands of Heritage Bank

and People’s Choice for an interim period during the initial integration process. Afterwards the merged organisation will adopt a new name and brand.

“Together, we will be stronger, more secure and capable of providing more for our members. I look forward to working together as we integrate our two businesses through a shared purpose and commitment to mutuality,” Heritage CEO Kerry Betros said.