NZCU Baywide profit record as it steps up IT

NZCU Baywide CEO Gavin Earle says says the credit unions investment in IT will enable it to stay nimble and satisfy its customers/owners. PHOTO/WARREN BUCKLAND

Hawke's Bay-based credit union NZCU Baywide has had a big year with record profit, a 26 per cent increase in loan payouts and a 10 per cent increase in deposits as it prepares to step up its IT capability.

At the credit union's AGM in Napier last night, chief executive Gavin Earle announced a record $2 million operating surplus and an increase in assets of 10 per cent to $294 million for the year ended June 30.

The low-interest-rate environment "further squeezed margins" but costs were contained, he said.

A 64 per cent lift in online loan payouts showed an announcement by chairman Ian Taylor to be not before time, with Baywide joining 10 other New Zealand credit unions in a multi-million-dollar IT "tier one solution", arguably the most significant project in Baywide's 45-year history, he said.

"When we roll out the new system late in 2017 it will immediately deliver significant benefits in terms of capability, speed, agility, operational efficiencies, as well as exposure to Oracle's worldwide innovation budget going forward," he said.

Mr Earle said it would enable credit unions to compete with banks head-to-head as banking migrated from tellers to customer's devices.

"Our focus is on providing a more integrated, enhanced customer experience, delivering the ability to do banking anywhere, anytime," he said.

"It's about transforming our business to ensure we remain relevant to our existing customers, but also future generations to come."

That did not mean branches would lessen their offerings.

"Interestingly, for all the enthusiasm consumers have shown for online and mobile banking, many customers continue to prize the option of stopping by a local branch.

"That is why our community branch network remains an important part of our channels mix in an increasingly virtual world. While more people choose to do business remotely, the future of providing services to our customer-owners revolves around choice."

The past two years' operating surplus was $1.7 million for the not-for-profit. Mr Taylor said profit went to its "customer-owners through improved service levels and fairly-priced products and services".

Originally established in Hawke's Bay in 1971 as the Whakatu Freezing Works Employee's Credit Union, NZCU Baywide now has a 16-branch network throughout the central and lower North Island, a head office in Hastings and an online offering.