As a result, subject to regulatory approval, Big Sky Credit Union’s business will transfer to Lifeplan Australia Building Society Limited which is operated by Australian Unity Investments – the funds management arm of Australian Unity. It is proposed Lifeplan Australia Building Society Limited will be renamed ‘Big Sky Building Society Limited’. It will have around 34,000 customers and approximately $650 million in gross assets. 

It is anticipated that the effective date, following the final regulatory approval, will be 1 March 2012. 

Big Sky Credit Union members will retain all existing product benefits and will become members of Australian Unity Limited, an organisation with a broader range of products and services. 

Mr Tony Ryan, chief executive officer of Big Sky Credit Union, who will become chief executive officer of Big Sky Building Society, said that the credit union board and management are delighted members have supported the plan to join with Australian Unity to form a larger, stronger, financial services business. 

“We believe that the joining of two like-minded, member- and customer-focused organisations will ensure our business is well-positioned to offer an attractive range of consumer financial services and become a strong alternative to the banks,” Mr Ryan said. 

Mr Rohan Mead, group managing director of Australian Unity, said that Australian Unity’s members and customers will also benefit from a broader product and service offering. 

“There is an excellent business opportunity for an organisation that can become an attractive alternative to the “big four” banks. 

“Our intention is that Big Sky Building Society will take on this position, and in doing so, we will be able to offer our members competitive deposit and loan interest rates, as well as an online mortgage product that we believe will be very appealing,” Mr Mead said. 

Mr David Bryant, chief executive officer of Australian Unity Investments, agreed that there is a place for a larger organisation in the consumer finance area that can take a similar role to that of building societies in the past. 

“Because of Australian Unity’s already substantial base in investments and finance, we believe we are better placed than most to take on this role. 

“Joining with Big Sky Credit Union rounds off the range of financial services we can offer, putting us in a very strong position when up against other broad-based financial institutions,” Mr Bryant said.

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If the proposal, which has the unanimous support of the directors of Big Sky, goes ahead, Big Sky’s business will transfer to Lifeplan Australia Building Society, which is part of the Australian Unity Group, and would have around 34,000 customers and approximately $650 million in gross assets. The proposal is for the business to be renamed Big Sky Building Society. 

Both Big Sky and Australian Unity are mutual companies that operate on behalf of their members rather than shareholders. As part of the proposal, Big Sky members would exchange their Big Sky membership for Australian Unity membership. 

A minimum of 75 percent of Big Sky members who vote (either in person or via proxy) must vote in favour of the proposal for it to be approved. A number of information meetings have been held for Big Sky members throughout Australia to explain details of the proposal and answer questions raised by members. 

Mr Tony Ryan, chief executive officer of Big Sky, believes Big Sky will become a stronger organisation as part of the Australian Unity Group and provide more benefits to its members. 

“The new combined business would be able to offer our members improved deposit and loan interest rates; better transaction packages; new products and services including an online mortgage product; and an expanded service centre network.  Members would immediately have access to an Adelaide service centre and we would seek to establish further centres in Western Australia, South Australia, Queensland and Victoria over time. 

“At the information sessions we held for members, a common query raised was about maintaining our level of service if the integration takes place.  We were able to reassure members of our commitment to member services and ongoing commitment to the principles of customer-owned banking. 

“While we have considered other strategic options for Big Sky, we believe that operating under the Australian Unity Group is the best strategy for creating an even stronger, customer-owned organisation,” he said.

Under the terms of the proposal, Big Sky members would retain all existing product benefits and become part of an organisation with a broader range of products and services.  It is intended that the products and services currently offered by Big Sky will be continued by the combined entity.

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