here&now

A new chapter for Savings & Loans

Savings & Loans’ merger with Australian Central Credit Union was approved by our members at our Annual General Meeting this afternoon, marking the beginning of a new chapter for Savings & Loans.

Staff at both credit unions are working hard at the moment to finalise the legal merger, which will occur next Tuesday, 1 December. From Tuesday, all current Savings & Loans members will become members of Australian Central and their share will be transferred automatically. The new credit union will eventually have a new name, but will initially operate under the Savings & Loans and Australian Central brands.

So what differences will you see now that the merger has been approved? In the short term, very little will change. Members will continue to access their accounts the same way and all passwords and PINs will remain the same. There are some immediate benefits we will be passing on to members, for example small reductions in the fees associated with our Retirement & Pension account as well as a higher interest rate to align it with Australian Central’s Club 55 Account.

While we’ve merged in a legal sense, it will be some months until Australian Central and Savings & Loans members will be able to use the other credit union’s branches, as we operate on different computer systems.

Looking a littler further ahead, work will soon get underway on developing a name, brand and identity for the new credit union.

There are a host of other decisions to be made over the next few months, including which products the new credit union will offer, which building will house the head office and what the growth strategy will be going forward. These are all important decisions that will take some time to finalise.

As soon as decisions are made, we’ll let you know what they are and what they mean for you. You’ll be given plenty of notice about any changes to your accounts and members’ interests will always be the most important factor in any decision.

This is a bittersweet moment for me, as I will not be going forward with the new credit union. After nine years at Savings & Loans I know that our staff are committed to serving their members and that this will continue with the new credit union.

Peter Evers, current Managing Director of Australian Central, will lead the new credit union. Having known Peter for many years, I know he is committed to the principles of mutuality and returning value to members. Under his leadership your credit union will continue to thrive well into the future.

The new credit union will continue to provide you, and hundreds of thousands of other Australians, with a competitive alternative to the big banks.

Greg Connor

Merger hits next major milestone

Our proposed merger with Australian Central passed an important milestone this week when it received approval to proceed to the member vote from regulatory bodies including the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA).

 

This was the first major milestone in the merger process and brings us closer to bringing the two organisations together.

 

It’s now in the hands of you, our members - and that’s what being a mutual, or member-owned, organisation is all about.

 

I’m not going to talk too much about the many benefits for members that will result from this merger, because there are many. Some of them are spelled out in full in the Member Information Document that you will receive in early November. I’ll simply say that it will give us the size and strength to be able to provide a genuine, member-owned alternative to the major banks. More specifically, the merger will enable us to provide an improved range of products and services, and greater access to your money through a wider network of branches and ATMs.

 

In previous blog entries, some members have expressed concern that bigger is not always better. I can assure you that we are not looking to grow for growth’s sake, but it will allow us to keep offering you competitive products and rates. It can be harder for smaller financial institutions to achieve the same economies and price competitiveness as bigger banks, but as a larger organisation we will be much better positioned to achieve this.

 

I can guarantee you, if the merger does proceed and we do grow in size, we won’t move away from our member focus and commitment to providing great service.

 

In the next week, you’ll receive in the mail a Member Information Document which will spell out all the important details on what the merger would mean for you. I encourage you to read it carefully.

 

We’re also holding a range of information sessions for members over the coming weeks. These will provide an opportunity for you to come along and hear information on the merger, but also ask any questions you may have. Full details on the member meetings can be found here.

 

The vote for the proposed merger will take place at our Annual General Meeting to be held at 12.30pm on Friday, 27 November at The Stamford Plaza, 150 North Terrace, Adelaide. Or, you can complete and return the proxy form you receive in the mail no later than 48 hours prior to the commencement of the Annual General Meeting. Only members over the age of 18 are eligible to vote.

 

If you have any general comments/questions, feel free to put something down here. But if you have more detailed or specific questions, I encourage you to go along to a merger information session in your area, phone 13 11 82 or email direct@savingsloans.com.au as you’ll get a much more detailed response than I can give. We’ve also developed some Frequently Asked Questions where you may be able to find the answer you are looking for.

 

 

Greg Connor

 

2009 Annual Report available

Savings & Loans’ Annual Report for the 2008/09 year is now available on our website at savingsloans.com.au/annualreport

This is the first time that the full report has been primarily published online. A small number of members requested a hard copy of the report, and they received a shortened version.

We’ve also combined our Corporate Social Responsibility Report with the Annual Report this year, which shows the prominence that the community and environment have within Savings & Loans.

It was certainly a tough year for everyone in the finance industry, and it was no different for Savings & Loans. We’ve come through the difficult times and set a strong platform for us to build from in the future, thanks to the amazing work of our staff and the support of members. The Chairperson’s Report and CEO’s Report within the Annual Report give more detail regarding our performance, and I encourage you to read it.

If you have any questions about the information contained in the report, please post them here.

Greg

There’s more to cycling than moving your legs

The Savings & Loans Cycling Team is racing the Jayco Herald Sun Tour, one of Australia’s leading cycling events, this week. It’s one of the highlights of the team’s season and something they plan for months in advance.

While the riders certainly work hard during the tour (today’s stage was 164km, yesterday’s was 141km and Monday was 141km), there’s also a lot going on behind the scenes to get them on the road each day.

The seven riders have a support team of five:

• Team manager
• Physiotherapist
• Masseuse 
• Mechanic
• Food and energy support

Team manager

The Savings & Loans team is managed by Pat Jonker, a seven time Tour de France competitor and Olympic medallist. During the tour he works out the tactics for each stage and coaches the team via radio from the chase car while the race is on.

 

Physiotherapist and masseuse

After riding up to 170km a day for seven days, the riders’ bodies are under a lot of stress and they have sessions with either the physio or masseuse after each stage. The physio also rides in the chase car, occasionally leaning out of the car to treat a rider while going up to 40 km/hr.

It takes around 3 hours for all of the riders to have their treatment at the end of each stage.

 

Mechanic

The riders can only go as fast as their bikes can take them, so they have to be in complete working order at the start of each stage. The team mechanic rides in the chase car with the physio and team manager to help with any breaks during the race, sometimes making small repairs while the bikes are still on the road.

There are two spare bikes on the roof of the car in case anything can’t be fixed straight away – every second spent on the side of the road is another second to be caught up later.

At the end of each day, every bike is stripped back, washed and the rebuilt to make sure they suit each rider’s specification. While all bikes might look similar, each rider has different preferences regarding seat height, gearing, brakes, wheels and a host of other ‘tweaks’.

If there are any crashes during the race – and this year there have been more than a few – then it can mean a lot more work for the mechanic. Thanks to a mix of good luck and being alert, the Savings & Loans riders haven’t been in too many bingles so far.

The mechanic works well into the night after each stage, which isn’t made any easier by the wild weather the Jayco Herald Sun Tour has encountered each year!

 

Food and energy support

It’s important that the riders can just concentrate on racing during the tour, so someone needs to make sure their uniforms are ready to go each day, they have enough food and energy gels during the race and their drinks are all ready.

As the cyclists can ride up to 170km each day, it’s important that they get plenty of calories in their system before, during and after the race. Most stages have a feed stop somewhere along the route, where the riders pick up a bag with replacement food, drinks and energy gels. Food ranges from cake to sandwiches or whole bananas.

Two support staff from each team stand on the side of the road at the designated feed zone and somehow make themselves visible to their riders. The cyclists then ride past and grab a bag filled with their food and drinks, all without stopping. Sometimes a group of up to 50 or 60 riders can come through at once, making the feed zone just short of pandemonium.

Immediately after finishing the stage, each rider is given a wipe down, some sugary drink to start replacing the energy they’ve lost and a sandwich. The cyclists don’t get a chance to be too picky about what they eat – if they’re not interested in a ham, cheese and tomato sandwich then they can wait until dinner before they get something to eat!

 

The Savings & Loans team is currently in a good position in the Tour after five days of racing in atrocious conditions. The Tour finishes with a street circuit in Lygon St, Melbourne, tomorrow.  For full results from the tour, visit the Jayco Herald Sun Tour website.

 

Patrick Gibson

Preparation work underway

I thought it was a good time to provide members with an update on how we are progressing with our proposed merger with Australian Central. There’s currently a lot of work being done at both credit unions as we prepare for the vote on the merger.

We’ve just finished the second stage of due diligence, which involves reviewing each other’s operations to make sure everything’s as it should be. Staff from Savings & Loans and Australian Central together with external advisers examined each other’s operations to make sure everything is in order. No issues were identified which would prevent the merger from proceeding.

We’ve also started the process of getting regulatory approval for the merger to make sure things run quickly and smoothly if our members approve it. Representatives from Australian Central and Savings & Loans have been in touch with APRA and we’re currently preparing the paperwork they require for us to get approval.

The documentation we’re preparing for APRA also includes information that we’re sending out to all our members in November so that you’ll be able to make an informed decision when you vote on the merger.

The information for members will go through the benefits for members and what the merger will mean for them.

So what’s next for members?

The notice of our AGM and member information will be sent out to members in early November..Members will be able to vote either by coming to our AGM or appointing a proxy (who is usually the Chairperson) to vote on their behalf. The Chairperson will vote according to your instructions.

We’re expecting a larger crowd than usual at this year’s AGM so we’ve moved to a bigger venue. The AGM will now be at 12.30pm on 27 November at the Stamford Plaza Adelaide, 150 North Tce Adelaide.

Before the AGM we’ll also be holding a series of information sessions regarding the merger. Details are being finalised regarding times and locations and I’ll update the blog as soon as everything’s finalised.

We’re already planning some immediate benefits for members from the changeover date, if the merger is approved by members. I can’t release any specifics on these benefits at the moment as we’re still awaiting Board  sign-off, but they include the reduction of some fees and higher interest rates on certain savings accounts.

We’ve also made a commitment to expand the branch network soon after the merger. Again, we’re still waiting on Board approval and can’t release any further details at the moment. All of the information you’ll need to make an informed decision will be in the member information pack which will be sent to you. .

Greg