Geelong’s own customer-owned banking institution is one step closer to effecting a merger with one of Australia’s fastest-growing banks.
Geelong Bank and Hume Bank have announced they received approval from the Australian Prudential Regulation Authority (APRA) last week to take their proposed merger to a vote of Geelong Bank members.
The two customer-owned banks signed a memorandum of understanding to explore a merger in August last year, with the boards of both institutions endorsing the merger in November.
If the merger meets with members’ approval it would create one of the largest regional customer-owned banks in the country, with $2.4b in assets, 16 branches, more than 60,000 customers and about 200 staff.
Geelong Bank chief executive Graham Fryer said the merger was a strategic decision to secure the sustainability and strength of customer-owned banking in the Geelong region for decades to come.
“This is an exciting step for the future of Geelong Bank and its members. In Hume Bank we have found another customer-owned bank with deep regional roots and a focus on community impact.
“I’m thrilled we have received APRA approval – we now look forward to taking the proposed merger with Hume Bank to our members for their endorsement.
“The merger will provide considerable benefits to Geelong Bank members including access to the full suite of Hume Bank’s products, covering everything from business accounts to insurance and credit cards. Geelong Bank members will form a meaningful part of the merged entity and the Geelong Bank name, branch and staff will be retained.”
Hume Bank chief executive Stephen Capello said the most significant benefit of the merger was the opportunity to build a stronger, future-ready foundation for both banks.
“This merger brings together two successful, values-aligned customer-owned banks to create a stronger platform for our members. Greater scale and resilience will allow us to invest more in technology, product innovation and capability, delivering an even better banking experience, now and into the future.
“Hume Bank and Geelong Bank share a deep commitment to community. Together, we will be stronger, more sustainable and better positioned to make a meaningful difference for our members and the regional communities we serve.”
Geelong Bank will provide members with an information booklet, with voting to begin immediately and the outcome to be announced at a special general meeting on 19 March.
