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Companion Credit Union and Community CPS Australia have merged in an attempt to remain competitive in an ever consolidating industry.
According to KPMG’s Building Societies and Credit Unions Survey 2009, merger activity in the sector has accelerated since 2008, with one less building society bringing the total number to eleven, and the number of credit unions decreasing by sixteen to 117.
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“The global liquidity crisis has resulted in reduced interest margins for the credit union sector. This combined with the ever increasing regulatory burden facing all mutuals, has contributed to the business case for mergers” KPMG Financial Services partner Martin McGrath said.
Companion Credit Union and Community CPS Australia announced its plans to merge yesterday following an overwhelmingly positive response to the idea at the Companion Credit Union annual general meeting late last month.
"This merger is an important step for Community CPS and Companion, ensuring we remain competitive in the financial services market and continue to deliver the best services to our members in NSW, SA, ACT and WA," Mr Benger said.
The combined entity will be one of Australia’s largest credit unions, representing a combined membership of more than 180,500, with total assets under management of $2.82 billion.
The merger will be effective from the start of 2010.
