People's Choice Credit Union

Australian Central Credit Union Limited, trading as People's Choice,[5] is an Australian credit union based in Adelaide, South Australia. It is one of Australia's largest[4] credit unions, with branches located in South Australia, Northern Territory and Victoria, offering loans, credit cards, transaction and savings accounts, mortgages and insurance.[6]

Australian Central Credit Union Limited
People's Choice[1]
TypeCredit union
IndustryFinancial services
HeadquartersFlinders Street, Adelaide, South Australia
Area served
Key people
Michael Cameron, Chairman[2]
Steve Laidlaw, Chief Executive Officer[3]
Products
Total assetsA$10.3 billion (2022)
Members390,000 (2022)
Number of employees
Approx. 900[4] (2022)
Websitepeopleschoice.com.au/

History

People's Choice traces its origins to 1949[7] and since then has evolved through a number of mergers including with the Northern Territory Credit Union.

In August 2009, Australian Central Credit Union and Savings & Loans[8][9] announced plans for a merger which was completed in December 2009. Savings and Loans Credit Union commenced in 1949 as the South Australian Public Service Savings and Loans Society. By the time of the merger with Australian Central Credit Union, Savings and Loans had merged with a number of smaller credit unions. Including, SAGASCO Employees' CU, Warwick Co-Operative CU and the SAATB CU. In 1992 regulations under the Credit Union Act required that the words "credit union" were present in the official title, a number of options including Premier, capital and Horizon were discussed, at a Special General Meeting in 1994 the name Savings and Loans Credit Union (SA) Ltd was approved. In 2005 Savings and Loans merged with the NSW NRMA Employees' Credit Union, and in 2008 Austral Credit Union merged with Savings and Loans Credit Union.[10]

Members then voted to change the name of the new organisation to People's Choice Credit Union[11] which was adopted on 18 July 2011.[12]

In November 2014, People's Choice Credit Union acquired TIO's banking division from the Northern Territory Government, transferring accounts and deposits of approximately 8,000 customers to People's Choice.[13]

In August 2021, People's Choice Credit Union entered into discussions with Heritage Bank about a potential merger,[14] and in April 2022 both companies announced that they planned to merge.[4] Members gave their approval on 16 November 2022.[15]

The new combined organisation will adopt the legal name of Heritage and People's Choice, and operate under the banking licence currently held by People's Choice.[16] The merged organisation will remain member-owned and will continue to operate under the People’s Choice and Heritage brands for an interim period, before adopting a single new brand in 2024.[17]

Structure and regulation

People's Choice is a credit union, a member-owned structure where its customers are also shareholders.[18]

Funding

People's Choice completed a $650 million offering of residential mortgage-backed securities (RMBS) in 2019. The offering was launched at $500 million[19] but was extended to $650 million after receiving $1.4 million in bids. Light Trust 2019-1 was priced at 102 basis points above the one-month Bank Bill Swap Rate.

Indexing data

People's Choice has developed an index of housing affordability and liveability to help people looking to buy a house. The People's Choice of Housing analyses suburbs to determine whether a financial institution is likely to lend to a couple on ordinary income and expenses interested in a median-priced home in that suburb (serviceability), the cost of buying that home (affordability). It also provides a series of factors summarizing whether people are likely to want to live in that suburb (liveability).[20][21][22][23][24]

References
  1. "Current details for ABN 11 087 651 125". Australian Business Register. 15 July 2021. Retrieved 23 November 2022.
  2. "New Chairman to support investment in member needs".
  3. "Steve Laidlaw appointed People's Choice CEO - People's Choice Credit Union".
  4. "Heritage Bank and People's Choice proceed with merger plans".
  5. "Current details for ABN 11 087 651 125". Australian Business Register. 15 July 2021. Retrieved 23 November 2022.
  6. Twining, Brendan, ed. (2018). "Mutuals Industry Review 2018" (PDF).
  7. "Our story". People's Choice Credit Union. Retrieved 27 October 2014.
  8. McDonald, Sarah (13 August 2009). "Savings & Loans, Australian Central Credit Union Plan to Merge". Bloomberg. Retrieved 16 November 2009.
  9. "Merger brings $7.2m profit for Australian Central Credit Union". ABC News. 18 February 2002. Retrieved 16 November 2009.
  10. "Welcome to Australian Mutuals History".
  11. "People's Choice Credit Union - Members approve People's Choice Credit Union". People's Choice Credit Union. 27 June 2011. Retrieved 27 December 2017.
  12. "People's Choice Credit Union - Launch of People's Choice Credit Union". People's Choice Credit Union. 18 July 2011. Retrieved 6 June 2012.
  13. Evans, Richard (25 November 2014). "People's Choice Credit Union buys NT's TIO bank". The Advertiser. News Corp Australia. Retrieved 23 November 2022.
  14. "Heritage Bank and People's Choice to explore merger opportunity". Heritage Bank. 18 August 2021.
  15. "Members approve merger of Heritage and People's Choice to create positive new force in Australian banking sector". People's Choice Credit Union. 16 November 2022. Retrieved 18 November 2022.
  16. https://www.heritage.com.au/about/merger/faqs
  17. Martin, Mina (3 March 2023). "Heritage Bank and People's Choice Credit Union officially merge". Mortgage Professional Australia.
  18. "Customer Owned Banking Association - Customer Owned Banking puts people before profits". www.customerownedbanking.asn.au. Retrieved 20 January 2020.
  19. "People's Choice launches Light Trust 2019-1 RMBS deal | KangaNews". www.kanganews.com. Retrieved 5 August 2019.
  20. "Adelaide's sweet spots: The city's most affordable and liveable suburbs revealed - realestate.com.au". www.realestate.com.au. Retrieved 21 October 2019.
  21. "Melbourne's sweet-spot housing markets revealed". NewsComAu. 18 October 2019. Retrieved 21 October 2019.
  22. "First home buyers urged to check unfamiliar suburbs for bargain homes". The New Daily. 18 October 2019. Retrieved 21 October 2019.
  23. Landy, Samantha (25 April 2020). "Melbourne's most liveable affordable suburbs revealed". Retrieved 7 May 2020.
  24. Brown, Jessica (25 April 2020). "Best of both worlds: the Adelaide suburbs where affordability and liveability go hand-in-hand". Retrieved 7 May 2020.
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