Posted November 2016 by Melissa Abraham-Smith
Continued strong growth in assets and operating surplus, and a core banking system upgrade underpinned NZCU Baywide’s annual result announcement to its customer-owners yesterday.
At the Credit Unions AGM in Napier last night, NZCU Baywide Chief Executive Gavin Earle announced a record $2.005 million operating surplus as well as an increase in assets of 10 percent to $294 million for the year ended 30 June 2016.
“This is an extremely pleasing result. While the low interest rate environment has further squeezed margins, costs have been well contained this past year,” Mr Earle said.
NZCU Baywide chairman Iain Taylor echoed Mr Earle’s comments on the performance of the organization, adding “given the continued challenging market, the operating surplus reinvested back into the business highlights NZCU Baywide’s ability to adapt and compete in a fast-changing environment, while maintaining value for our customers”
Mr Taylor added that there has been strong growth in personal loans, with disbursements up an impressive 26 percent from the previous year. Noticeably there was a 64 percent lift in online disbursements. “We have definitely picked up solid business growth throughout New Zealand by having an online presence that makes it easy to apply for loans via our website”
Mr Taylor said that NZCU Baywide is proud to be a community based 100% customer-owned financial institution.
“This means that not only are all our decisions made locally, but most importantly, are made for the benefit of our customer-owners. Our profits are returned to customer-owners through improved service levels and fairly-priced products and services”
Like most financial service providers in New Zealand, NZCU Baywide operates on an aging legacy computer system, which inhibits our ability to quickly change and adapt to meet our customer’s needs, said Mr Taylor,
“The Board are therefore extremely pleased that NZCU Baywide, together with ten other New Zealand Credit Unions have collectively reached agreement to replace the core banking system with a new Tier One solution”.
Mr Earle said this is arguably the most significant project in NZCU Baywide’s 45 year history.
“The conversion of our core banking system to the ultra-modern, market leading Flexcube system from Oracle, to replace our aging system represents a step-change in NZCU Baywide’s future technological capabilities. When we roll out the new system late in 2017 it will immediately deliver significant benefits in terms of capability, speed, agility, operational efficiencies, as well as exposure to Oracle’s worldwide innovation budget going forward.”
“Our focus is on providing a more integrated, enhanced customer experience, delivering the ability to do banking anywhere, anytime. It’s about transforming our business to ensure we remain relevant to our existing customers, but also future generations to come”
Mr Earle said there has been continued growth in online and mobile banking use but NZCU Baywide customers can have confidence that the branch network will continue to be an important part of the channels mix.
“Interestingly, for all the enthusiasm consumers have shown for online and mobile banking, many customers continue to prize the option of stopping by a local branch. That is why our community branch network remains an important part of our channels mix in an increasingly virtual world. While more people choose to do business remotely, the future of providing services to our customer-owners revolves around choice.”
• A $2.005 million operating profit
• Total assets increased by $28 million to $294 million
• Customer deposits grew by $26 million to $252 million
About NZCU Baywide
NZCU Baywide is a 100 percent New Zealand owned credit union with a 16 branch network throughout the central and lower North Island and a nationwide online lending website servicing the needs of everyday kiwi’s. It was originally established in Hawke’s Bay in 1971 as the Whakatu Freezing Works Employee’s Credit Union.
NZCU Baywide’s head office is in Hastings, Hawke’s Bay.