November 17, 2022
Members of Heritage Bank and the People’s Choice Credit Union have approved a merger of the two banking organisations.
A Heritage spokesperson said the provisional results of a vote showed a clear approval for the merger.
Both organisations needed to have at least 75 per cent of voting members in favour of the proposal for it to be approved.
The provisional vote outcomes are still being validated and confirmed with the final results to be announced within days.
The spokesperson said People’s Choice and Heritage were two of Australia’s most successful customer-owned financial institutions, sharing strong cultural alignment, deep regional roots and “an absolute commitment to mutuality”.
The new entity will have over 720,000 members, 1900 employees, more than $23 billion in assets and 95 branches across South Australia, Victoria, NSW, Queensland and the Northern Territory.
“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.
The organisations are now awaiting final regulatory approval for the merger.
If this happens, the two organisations will become a single organisation from March 1 next year.
People’s Choice chair Michael Cameron will head the new organisation, with Heritage chair Kerry Betros to become deputy chair.
Heritage CEO Peter Lock will become the new CEO with People’s Choice CEO Steve Laidlaw his deputy.
Mr Lock will retire 18 months after the establishment of the merged organisation, when Mr Laidlaw will be appointed CEO.
The new organisation will continue to operate under the existing brands of Heritage Bank and People’s Choice during the initial integration process.
The merged organisation will then adopt a new name and brand.
The Heritage spokesperson said there would be no branch closures as a result of the merger and no redundancies below executive level.
Dual head offices will be maintained in Adelaide and Toowoomba.
