19 August, 2020

Firefighters Credit Co-operative Limited in Victoria and Teachers Mutual Bank Limited today announced they have signed a Memorandum of Understanding to work together on a merger proposal that would see the co-operative merge with one of the largest mutual banks in Australia.

Due to the strong synergies, the Firefighters Credit Co-operative Limited would join Teachers Mutual Bank Limited’s Firefighters Mutual Bank division. Both Firefighters Mutual Bank and Firefighters Credit Co-operative Limited were established to look after the welfare and financial needs of firefighters and their families and continue to provide tailored support to this community today.

Firefighters Credit Co-operative Limited General Manager, Bob Malcolm, said: “The priority for both mutuals is to provide superior financial support and deliver the best outcomes for our members.

“The past year has brought many new challenges and we believe that in order to best serve members, the mutual banking sector must quickly adapt their commercial and technological offerings. We reviewed our position and recognised that the best path forward was to seek a merger with a partner that understood our values and priorities and would allow us to achieve benefits of scale to deliver a sustainable future for our members.

“We identified Teachers Mutual Bank Limited as our preferred partner, because it is the right cultural fit. We are both strongly committed to becoming the main financial services provider for the national firefighter and emergency service worker community and I look forward to playing an ongoing role in this vision.”

The proposal will ultimately require the approval of the Firefighter Credit Co-operative Limited’s members, however, the mutual banks believe a merger that builds on their shared values and commitment to the firefighter community could deliver great benefits to members.

Firefighters Mutual Bank General Manager, Jim O’Connell, said: “We share a lot in common with Firefighters Credit Co-operative Limited. We both have a clear member-first approach, strongly rooted by our heritage as mutual banks and our vision to support firefighters in securing their financial futures.

“We are really excited about this announcement and the opportunity to welcome the Firefighters Credit Co-operative Limited members to one of the largest and steadily growing mutual banks in Australia.”

Teachers Mutual Bank Limited CEO, Steve James, said: “The proposed merger with Firefighters Credit Co-operative Limited shows strong leadership and foresight by both boards of directors in creating a strong opportunity for both mutuals to grow and provide exceptional service to their loyal firefighter members.”

“The unprecedented market turbulence of the past year has demonstrated why size and scale matters in the mutual sector. As one of Australia’s largest mutual banks, we are able to provide our members with outstanding value through our ongoing investments in technology, a robust workforce of over 600 staff who are committed to delivering quality support and high engagement with the communities in which our members operate.”

There will be no changes to the current composition of the Teachers Mutual Bank Limited Board, or common bond. The Firefighters Mutual Bank bond welcomes current or retired employees, or volunteers with a fire or emergency service and their families from across Australia.

The proposal is expected to be put to Firefighters Credit Co-operative members for a vote in early-2021 after due diligence and regulatory approval from APRA.

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Amanda Resurreccion
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