20 January, 2021

The Boards of Victorian-based Pulse Credit Union Limited and nationally operating Teachers Mutual Bank Limited have announced they have signed a Memorandum of Understanding to enter merger discussions and begin due diligence.

Pulse Credit Union Limited and Teachers Mutual Bank Limited are connected by their support for essential workers and commitment to providing them with the highest level of service. Aligning with Teachers Mutual Bank Limited’s Health Professionals Bank division, Pulse Credit Union Limited has traditionally provided banking services to members in the healthcare industry. Mergers with La Trobe University Credit Union and Melbourne University Credit Union in October 2011 allowed Pulse Credit Union Limited to extend the provision of services to members in the tertiary education sector, creating a further alignment with the UniBank division of Teachers Mutual Bank Limited.

Pulse Credit Union Limited CEO, Stuart Neave, said: “In the past 12 months the mutual banking industry has faced growing challenges in an era of digital disruption, reducing margins, increasing regulatory change and challenges from the COVID-19 pandemic. The strategy driven by our Board has been to search for opportunities to achieve the size and scale that will support outstanding and sustainable service for our members.

“We have chosen Teachers Mutual Bank Limited as our preferred partner as we are united by our support for the healthcare and education industries, our dedication to members and strong values. We believe the proposed merger with one of the largest mutual banks in Australia will provide a greater opportunity to enhance member value through improved product and service offerings.”

Teachers Mutual Bank Limited CEO, Steve James, said: “Throughout the disruptive conditions of the past year, our Board of Directors has focused on maintaining the strength of the Bank and meeting the evolving needs of our members. We are proud of the growth we have experienced in this time and our success in enhancing our member value proposition with an emerging digital-first approach. The proposed merger with Pulse Credit Union Limited creates an opportunity for us to grow further and provide exceptional service and value to additional loyal mutual banking members based in Victoria.”

There will be no changes to the current composition of the Teachers Mutual Bank Limited Board, or common bond. Given the strong alignment and majority membership in the healthcare sector, Pulse Credit Union Limited members working in that sector would access Teachers Mutual Bank Limited’s services through the Health Professionals Bank division and Pulse Credit Union Limited members working in the tertiary education sector would access the Teachers Mutual Bank Limited’s services through the UniBank division.

Over the coming months, Teachers Mutual Bank Limited and Pulse Credit Union Limited will undertake a thorough due diligence process. After due-diligence is complete, the proposal will require regulatory approval from the Australian Prudential Regulation Authority, before seeking approval from Pulse Credit Union Limited’s membership.

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Amanda Resurreccion
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