Alliance Bank^® welcomes Nova Credit Union

Alliance Bank^® has welcomed Nova Credit Union as the latest mutual financial services company to partner with the bank.  Alliance Bank^® is a shared value business between participating mutual companies and Bendigo and Adelaide Bank. The four foundation partners are – AWA Mutual Limited, BDCU Limited, Circle Mutual Limited and Service One Mutual Limited.  The collaboration creates additional value for members with all of the Alliance Bank® partners experiencing growth in member numbers and business since joining.

Increased regulatory demands and the need to embrace new technologies are drivers for the strategic collaboration. Alliance Bank^®enables mutual companies to continue to grow while remaining independent and close to their roots.   Nova Credit Union was established in 1964, initially as Hunter Water Board Employees Credit Union, merging with Newcastle Herald Employees Credit Union to become Nova Credit Union. Following the partial transfer of business, Nova Credit Union changed its name to Nova Mutual Limited.

Head of Alliance Bank^®, Carolyn Adams said: “Alliance Bank^® is on a growth trajectory and we warmly welcome Nova as the fifth mutual company to join us.

“Joining Alliance Bank^® is neither a merger nor an acquisition and member equity and capital is retained by Nova Mutual Limited for use in social enterprise and for the benefit of members.

‘Partnering  is at the core of Bendigo and Adelaide’s (BEN) strategy, where trusted participants  work with their members and communities while BEN plays a back-office role in unlocking scale and infrastructure.

“Collaborating with Alliance Bank^® enables mutual companies to secure their long-term future while retaining their independence and local identity which is so important for members and service providers.  As partners, connection to customers and community is very much in our collective DNA.

“The construct of this arrangement enables member capital to be freed from regulatory capital requirements and to date, the four foundation Alliance Bank^® partners have been able to retain more than $40 million in mutual capital for investment into their communities.

“Regulatory and compliance reporting responsibility is alleviated, enabling mutual companies’ staff to focus on member services, growing their business and “doing good” for members and their communities of interest.

Collaborating with Alliance Bank^® has enabled investment by Alliance Bank’s^® partners into a range of exciting initiatives, including branch transformation, the creation of a ‘Do Good Fund’ - where major investments are being made into local community facilities and programs - and a unique Social Impact Loan program benefitting aspiring apprentices and emerging social enterprises.

Ms Adams said: “While each partner and the bank have a unique history, culture and purpose, they firmly hold common goals for long term sustainability.   All embrace Shared Value principles and are committed to helping members build wealth, make positive contributions to their communities and ensuring the success of all the stakeholders aligned to the business model.

“A particular strength of collaborating with Alliance Bank^® is the retention of the mutual company board, CEO and management team who retain local decision-making, business management and the products and services delivered to members.

“Alliance Bank^® members enjoy access to an expanded range of products and services with all mutuals in the franchise now able to enhance their offering for customers with fixed loans, business banking, credit cards, mobile apps and social impact lending.

“Alliance Bank^® is currently working with a sixth partner - with an announcement likely in the near future - and we look forward to welcoming many more mutual companies into the Alliance Bank^® fold”, Ms Adams concluded.