Leading credit union, Community CPS Australia, has announced plans to merge with Hunter Valley industry peer, Companion Credit Union.

The intended merger will further strengthen Community CPS’ position in the Australian financial services market. Following the organisation’s successful merger with Western Australian United Credit Union in November last year, Community CPS continues to expand its network into regional Australia.

“The boards of both organisations feel there is a strong synergy and cultural alignment between our credit unions and we share similar strategic aims,” said Chief Excutive Officer, Kevin Benger.

“Both Community CPS and Companion are committed to members, staff and the communities in which we live and work, and as a combined business, we will have a greater capacity to develop financial solutions that deliver the best value to members.”

“Both credit unions are strong credit unions in the financial services industry and have maintained their outstanding performance over many years. By combining the strengths of both organisations, such as excellent staff, loyal membership bases and strong product portfolios, we are creating a clearly differentiated financial services organisation.”

Upon approval, the proposed merged entity would have a combined membership base of 186,000 members, approximately $3 billion in assets under management and more than $380 million of funds under advice.

An expanded national branch network in ACT, NSW, SA and WA, enhanced products and services, and a greater spread of risk through wider market diversification have been identified as key benefits of the merger.

“This is an exciting step for Community CPS and Companion. In today’s economic climate, competition within the financial services industry will continue to intensify. Together, we can strengthen our position in the market, further develop our offering, and extend the reach of our community support,” said Mr Benger.

A Member Information Document is being prepared and will be lodged for regulatory endorsement shortly. Members of Companion will be invited to vote on the proposed merger at the credit union’s Annual General Meeting in November, once regulatory endorsement has been granted.

With operations throughout South Australia, the Australian Capital Territory, Western Australia and regional New South Wales, Community CPS is one of Australia’s most influential credit unions. It operates 36 Personal Financial Centres and employs more than 530 people.

Companion was established in 1974 by a group of Hunter Valley coal miners and opened its doors to the general public in 1988. The credit union has more than 11,000 members, 49 employees and manages a combined $262 million in assets.