Two of Australia’s leading mutual financial institutions, IMB and Community Alliance Credit Union (CACU), have announced plans to merge, in a move that they say will deliver financial strength and a more competitive alternative to the major banks.

The merger includes the four Credit Union divisions operating under the CACU banner:

Illawarra Credit Union

Unicom Credit Union

Western City Credit Union

Shoalhaven Community Credit Union

The Boards of both organisations have voted unanimously in favour of the merger, which, if approved by CACU members and the Australian Prudential

Regulation Authority, will be achieved by a voluntary transfer of business from CACU to IMB.

IMB Chief Executive Robert Ryan said the merger demonstrated a commitment to mutuality by both organisations.

“We are delighted with the proposed merger as it strengthens our position in the financial services marketplace as a clear and competitive alternative to the banks.

“We are both proud member-based organisations, strongly committed to the communities in which we operate, who share a commitment to offering superior personal financial services for members,” Mr Ryan said.

“With combined assets of more than $5 billion, the merged organisation will have a stronger balance sheet, better protection from future market uncertainty and a sound platform for future growth,” he said.

Last month, IMB and CACU were awarded Money magazine’s prestigious national Consumer Finance Awards, Building Society of the Year and Credit Union of the Year 2009.

IMB Chairman, Mr Michael Cole, said the merger would benefit IMB because a stronger mutual presence would give members more choice, more value and a broader range of products and services, as competition in the financial services sector continued to intensify.

Both organisations would continue to operate in the marketplace under their individual brands. In the longer term, operating systems would be integrated so members were able to conduct their business at more branches and ATMs.