Mutual benefits from union merger

NZCU Baywide chair Iain Taylor with Credit Union Bay Health chair Carol Priest have merged their organisations.

Credit Union Bay Health members have voted to merge with NZCU Baywide.

Credit Union Bay Health chairwoman Carol Priest said members voted "resoundingly in favour".

"This resolution follows a process of discussions between the boards of both organisations and robust due diligence, which has highlighted the mutual benefits for members coming together as one stronger entity - one that is better positioned to provide a compelling banking alternative to the members we serve," she said.

The merger sees 1800 Credit Union Bay Health (CUBH) members join 34,000 members of NZCU Baywide, giving CUBH's members access to additional banking products and further strengthening Hawke's Bay-based Baywide as the largest credit union in the country.

The Hawke's Bay Hospital CUBH office will remain open.

NZCU Baywide chairman Iain Taylor said the merger benefited both parties and gave Baywide "significant opportunity to grow the business within the Hawke's Bay health sector".

"Importantly, the merger with NZCU Baywide will mean our culture and philosophy of being member-owned and operated is retained," Ms Priest said.

The merger will become official in February.

Credit unions rank collectively among the country's largest financial service providers (by financial transactions), with one of the largest ATM networks in the country, outside of major banks.

Baywide merged with Manchester Unity Credit Union last year, boosting member numbers to 40,000. It announced a $1.2 million profit to June, a small increase on last year. Smaller credit unions have proven vulnerable. Hibernian Credit Union in Wellington was forced into liquidation after an employee stole $1.2 million over seven years.