A overwhelming majority of members have approved a merger between Regional Australia Bank and the Holiday Coast Credit Union.
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Over 90 per cent of members voted in favour of the merger at separate special general meetings last week, with the combined entity to have 85,000 members and an asset base of $2.2 billion.
Regional Australia Bank chairman Graham Olrich said, that "while the sector proudly continues to grow, as people turn away from the big four banks, it is smaller institutions that find it difficult to sustain that growth and keep pace with digital transformation and increasing regulatory complexity."
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"We are excited by the prospect of value that this merger will deliver for our members," he said.
"Competitive products and services, fair fees and charges as well as greater investment in technology will be some of the key benefits.
"This is what the partnership is all about, creating sustainable value for members and offering genuine support to the communities where they live and work."
Mr Olrich will stay on as chairman of the new entity, with Kevin Dupé retaining his position as Regional Australia Bank CEO.
Retiring HCCU CEO Neville Parsons will join directors Allan Gordon (Chairman) and David Johnson as members of the Regional Australia Bank Board.
The merger is one of the biggest seen in the customer owned banking industry in recent times, and will take effect from July 1 if approved by the Australian Prudential Regulatory Authority.
