Australia’s first 100% customer owned bank

Key Highlights

Organisational profile - Overview
bankmecu exists to serve its customers. All customers have an equal say with one share and one vote in how the Bank conducts its business on their behalf. Rather than rewarding external investors, bankmecu profits are owned by its customers and returned in the form of better rates and fees, as well as invested back into the Bank in ways to ensure its strength and development. Being accountable to its customers and sharing profits in this way helps ensure the Bank conducts its business in more sustainable and responsible ways. It provides for the future, rather than focusing on short-term gain.
 
bankmecu is solely based in Australia and headquartered in Melbourne, Victoria. As at 30 June 2013, we had 125,404 customers, $3.041b assets, 348 employees and we operated through a network of 23 service centres, a national call centre and a range of remote online banking services. The core business is retail banking. In addition, we have agreements in place with a number of organisations to provide a range of financial, insurance and ancillary products and services.
 
Watch our video: Why bank with bankmecu?
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Organisational profile - indepth

Organisational profile

bankmecu is Australia’s first customer owned bank.

mecu Limited (trading as bankmecu) is a mutually owned unlisted public company limited by shares and is registered with Australian Securities and Investment Commission (ASIC) and Australian Prudential Regulation Authority (APRA). bankmecu holds an Australian Financial Service Licence, Credit Licence and is an Authorised Deposit-Taking Institution (ADI).

bankmecu is solely based in Australia and headquartered in Melbourne, Victoria. As at 30 June 2013 bankmecu had 125,404 customers, $3.041b assets, 348 employees and operated through a network of 23 service centres, a national call centre and a range of remote on-line banking services.

 The  core business of bankmecu is retail banking. In addition, the Bank has agreements in place with a number of organisations to provide a range of financial, insurance and ancillary products and services to its customers. These include:

  • VISA debit and credit cards
  • remote banking payment products and services including BPAY and bank@Post
  • foreign currency
  • general insurance
  • life and health insurance
  • financial planning

bankmecu customers include both individuals and organisations. They cover a wide geographic area and different business sectors including:

  • education
  • science
  • energy
  • government
  • the community sector

The majority of customers reside in the state of Victoria.

mecu Limited’s subsidiary Ed Credit Services Pty Ltd is the Trustee for a Unit Trust that provides operational leases to schools. bankmecu is the sole beneficiary of the Unit Trust and the Trust reports directly to bankmecu.

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The bankmecu philosophy

bankmecu strives to embed good governance and economic, social and environmental accountability across all aspects of its operation and to make it the responsibility of all employees from the Board of Directors to all staff.

bankmecu is part of an international cooperative movement guided by seven international principles:

  • voluntary and open membership
  • democratic member control
  • member economic participation
  • autonomy and independence
  • education, training and information sharing
  • cooperation among cooperatives and
  • concern for community

For further information about cooperatives: International Co-operative Alliance.

Vision: what we aim to achieve

As Australia’s first customer owned bank, bankmecu is inspired to enhance the financial wellbeing of its customers in responsible ways.

Purpose: what we do

bankmecu will provide its customers with value for money, responsible banking, insurance and financial planning solutions, as well as memorable, superior service in a profitable and sustainable way.

Values: how we earn people’s trust

bankmecu will:

  • treat its customers with dignity and respect
  • value, encourage and support its employees
  • operate ethically and with integrity
  • apply prudent financial and business practices
  • be economically, environmentally and socially responsible

Brand – what we want to be known for

bankmecu will be regarded as the pre-eminent customer owned banking brand in Australia.

bankmecu will be considered a challenger brand representing thought leadership in responsible banking.

Watch our video: Why bank with bankmecu?

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Strategic Plan

bankmecu’s five year strategic plan 2013-2018 was approved by the Board after review of the Bank’s strengths, weaknesses, opportunities and threats (SWOT) and a situation analysis.

This report is framed around the strategic plan and provides performance reporting against goals and objectives outlined. Each chapter of this report addresses a goal identified in the strategic plan.

Reputation Target market Customer benefit Governance Profitablity and productivity Sustainable growth

Reputation

Goal one: leadership in customer owned bank performance.

More on Reputation

Target market

Goal two: increase market share amongst chosen target market.

More on Target market

Customer benefit

Goal three: deliver customer benefit.

More on Customer benefit

Governance

Goal four: excellence in governance.

More on Governance

Profitability and productivity

Goal five: deliver profitability and productivity.

More on Profitability and productivity

Sustainable growth

Goal six: grow its assets to $3.6 billion by 2017.

More on Sustainable growth

Planning matrix

In achieving its vision bankmecu aims to maintain its growth/profitability/capital planning matrix as its minimum level of performance. bankmecu’s performance risk matrix framework ensures strength, discipline, relevance, accountability, compliance, risk management and survival.

Legend:
ROE Return on equity
BBSW Bank bill swap rate
RBA Reserve Bank of Australia
D1 Growth in selected financial aggregates (credit growth covering banks, other ADIs and non-ADIs and including securitisation)
D3 Monetary aggregates (ADI deposit growth, excluding currency held by the private non-bank sector and excluding certificates of deposit issued by banks)

Performance against bankmecu’s planning matrix can be found through the links provided.

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Organisational changes

A full list of current bankmecu service centres is available here.

bankmecu closely monitors the activity of its service centres to ensure they represent:

  • a responsible investment of customers’ money
  • are well supported by the local community, and
  • provide staff with career development opportunities

bankmecu closed three service centres and opened one service centre during the reporting period.

  • Kerang service centre closed on 2 November 2012
  • Sunbury service centre closed on 28 June 2012
  • Kensington service centre was closed on 16 November 2012
  • Melbourne service centre opened on 16 November 2012

The closures were deemed a responsible approach to managing costs on behalf of customers, as they removed an unbalanced cross-subsidisation resulting from lack of business growth in these areas. The opening of the service centre in Melbourne was to better support existing customers and attract new customers living and working in the central business district.

The Australian Prudential Regulation Authority (APRA) endorsed the decision by the board of Fitzroy & Carlton Community Credit Cooperative Limited (FCCC) to merge and transfer its operations to bankmecu on 15 June 2013, contributing $793,618 in net assets to the bank.

There were no significant changes to the operations of Ed Credit Services Pty Ltd during the reporting period.

During the year the Bank established an internal securitisation trust – Buloke, a repurchase obligation trust for securing the ability to obtain liquid funds from the Reserve Bank of Australia. The Bank purchased secured notes from the trust which are available for sale to the Reserve Bank should liquidity needs not be satisfied by normal operational liquidity.  The notes are secured by residential mortgage backed securities held by the Bank. 

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Awards and external recognition

bankmecu was pleased to receive the following awards and recognition:

  • Australasian Reporting Awards inaugural special award category ‘Integrated Reporting’ Award and the special award category ‘Online Reporting Award – Private Sector’
  • Canstar Cannex’s Best Value Australia  – Customer Owned Bank Award
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