NZ Credit Union Baywide reports healthy growth in year to June 2017

Gavin Earle says the installation of the new core banking system opens up the next phase of business transformation for Baywide. Photo / Warren Buckland

There were plenty of satisfied smiles at NZ Credit Union Baywide's annual meeting last week in Havelock North with reported ongoing progress with its core-banking system upgrade which has seen a 6 per cent growth in assets to $312 million and a healthy financial position with reserves of $39.9m.

Chief executive Gavin Earle said the year to June 2017 has been one of investing in core infrastructure technology while balancing this commitment with good growth, solid profitability and exceptional customer service, including developing a new branch concept.

"Last year we set goals to reflect the rapid changes we're all experiencing from technology change and digital transformation, the most significant being the upgrade of our core banking system," Mr Earle said.

"It has been no mean feat to take an organisation of our size through this change and there's been a huge effort by the team to focus on the pending implementation, while also maintaining our day-to-day service at the levels our customers expect.

"This has paid off with the new technology expected to go live in the very near future," he said.

Mr Earle said along with assets growing, loans to customers grew by 26 per cent to $267m and Baywide's credit rating was reaffirmed at BB by ratings agency Fitch.

"Our strategic investment in the future, as well as tighter interest margins, did lead to a lower operating surplus of $1.2m, with borrowers and investors benefiting by approximately $1m more in interest than was projected."

Mr Earle indicated the installation of the new core banking system opened up the next phase of business transformation including mobile app and internet banking systems.

He also pointed out that while technology has been a focus, the branch network is also in line for an upgrade.

Baywide chairman Ian Taylor supported Mr Earle's summary of the year.

"NZCU Baywide will shortly be the second credit union in New Zealand to transform to a core banking platform," he said.

"For the last year we have been working with a group of nine credit unions to replace our core banking system - Aotearoa Credit Union was first but is a lot smaller," he said.

"This new platform gives us the ability to respond to rapid technological change in the market and be flexible enough to meet the evolving needs of our customers."

July 2016 - June 2017 year highlights

Total assets grew 6.1% to $312m

Operating surplus of $1.2m, down from $2m in the previous year

Reserves of $39.9m

Loans to members grew by 26% to $267m