Posted November 2019 by Melissa Abraham-Smith
Media release 22 November 2019
Credit Union Baywide, trading as NZCU Baywide, New Zealand’s largest customer owned credit union, has acquired Co-op Money NZ, the supplier of core banking services and support infrastructure to some of the country’s credit union sector.
From today Co-op Money NZ becomes part of Baywide, retaining its name and operational structure. The announcement follows the merger of four credit unions under Credit Union Baywide in May 2019.
Co-op Money NZ provides NZCU Baywide, NZCU Auckland, NZCU Employees, NZCU Steelsands, Firefighters and Fisher & Paykel credit unions with their core banking, card and payments services, and until now has been owned collectively by a group of credit unions. Its core business is banking and payments infrastructure services. It also provides these services to other non-credit union customers.
Gavin Earle, Chief Executive of Baywide, says the announcement follows a strategic review about the needs of the credit union sector as a whole.
“Our sector is an incredibly important part of New Zealand’s financial heritage. Just like any other part of the financial sector, it’s constantly under pressure to evolve, adapt and be more efficient.
“This acquisition helps us do this while also achieving more agility to respond to customer needs - we have to be the absolute best we can be at serving our member-owners.
“As the largest New Zealand credit union we are in a strong position to achieve this outcome,” he says.
At the heart of Baywide’s strategy is strengthening the supply of critical banking services to the majority of credit unions and other customers, whilst continuing to build the credit union philosophy of people helping people.
Under the terms of the agreement the existing named credit unions and third party customers of Co-op Money NZ will continue to receive services from Co-op Money NZ.
The acquisition also brings potential for business growth to maximise the value from core banking and payments services and infrastructure.
“The third party growth strategy remains an important focus,” Gavin Earle continues. “It’s early days but we are lucky to be working with a great team at Co-op Money NZ who are focused on looking after both credit union and non-credit union customers. It’s a great opportunity to enhance these relationships so we all prosper together.”
With in excess of half a billion dollars of assets, serving over 60,000 member-owners and around 300 staff, Baywide’s move will enable it to make key decisions about the future supply of core banking services for the benefit of its member-owners and credit union customers.
“We all need to benefit if we are to be successful individually - this is the credit union way. This latest announcement is further testament to the group of six credit unions working collaboratively for the benefit of our collective membership.”
“As a group we know it has become increasingly important to innovate constantly. This move builds further foundations to achieve needed change and realise a sustainable future. It shows the willingness of the industry to adapt together and provide a real alternative for day-to-day banking in New Zealand,” he says.
“Our immediate focus is looking after the interests of Co-op Money NZ customers and suppliers, including rolling out new technology solutions. First up is a new mobile banking app. It’s a great time to be in this industry. There is considerable change and we are taking positive steps to ensure the relevance of credit unions and their provision of services to future member-owners.”