Northern Tasmanian credit union Heritage Isle is set to merge with Sydney-based Police Bank.
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The credit union’s three branches in Launceston, George Town and Beaconsfield will maintain the Bank of Heritage Isle name, however its headquarters will move to Sydney under the proposed changes.
No staff, branch or service losses are expected in the move, according to chairwoman Liz Swain.
She said the new corporate structure would ensure greater access to advanced banking technology for Heritage Isle’s 6667 members.
They will also gain access to fixed-term home loans and a credit card product.
“There’s a whole lot of new technology that is coming into the marketplace, which we will be in a good position to access,” Ms Swain said.
“These are apps and technologies our credit union couldn’t afford to purchase and run.”
Ms Swain conceded there may be changes to interest rates in the long run.
“There are some very minor [rate] changes we’ll need to shuffle, but Police Bank aren’t keen to change the rates tomorrow,” she said.
Police Bank comes to Tasmania as one of the top-10 largest mutual banks in Australia, with total assets of $1.54 billion, compared to Heritage Isle’s $94 million.
Police Bank has plans to expand to the South of the state by setting up a branch in Hobart.
HICU CEO Annette Griffin said: “the similar cultures of the two organisations will help allow the benefits to flow through to members in many ways including; access to a wider range of products and services, and a continued focus on providing personal service to the Tamar Valley region.”
Ms Swain said the current board of Heritage Isle will have strong input into Police Bank’s Tasmanian operations.
“The positive we can offer them is to continue our brand in Tasmania and our knowledge of the environment,” she said.
The merger will be voted on by Heritage Isle members at a special general meeting on Thursday, April 19.