24 September 2019
Proposed merger by Nexus Mutual with customer-owned banking sector leader, Beyond Bank Australia
- Retention of Nexus Mutual brand
- No branch closures
- All Nexus Mutual employees will be offered a role in the merged entity
- An operating structure that supports local decision making
- Member benefits in the form of improved interest rates and reduced fees and greater banking convenience
We would like to advise members of some important plans in relation to a merger between Nexus Mutual and Beyond Bank Australia.
Nexus Mutual and Beyond Bank Australia have (with the authority of their respective Board of Directors) signed a Memorandum of Understanding to explore the benefits a proposed merger (between the two organisations) could provide to their respective members.
Due diligence has commenced, and while there are a number of regulatory approvals and a member vote to make the merger a reality, we believe that the merger will be in the best interests of our members – and we will (subject to being satisfied with the results of our due diligence) be advising members to support the merger.
There is an increased awareness of our value proposition and a growing demand for our style of banking. We want Nexus Mutual to grow and fully realise its potential. We want to deepen our relationships with existing members and attract new members into the fold.
Although Nexus Mutual is currently in a sound financial position to deliver on this potential, we operate in a changing and competitive banking landscape where the costs to operate are increasing. There are considerable challenges ahead which may impact our ability to continue to provide an attractive banking offering for our members.
We believe that greater economies of scale are required to continue to offer market competitive interest rates and fees to offset expected profitability pressures arising from the current highly competitive, low interest rate, low growth environment.
A merger with Beyond Bank will help us achieve this.
It will position us to remain price-competitive, meet the strong latent demand for banking in our member base, meet future banking and regulatory obligations and deliver better services and technology that our members expect from us.
Why Beyond Bank?
Beyond Bank is 100% customer-owned, with a strategy and Vision that is in alignment with ours. Like us, Beyond Bank is focused on enriching the lives of its customers and improving the prosperity of the communities it serves. With combined assets of more than $6.4 billion, an extended branch network with 43 branches and an award-winning mobile banking app, a merger with Beyond Bank will create a member-owned banking group with the resources to better position us to meet the challenges ahead.
Beyond Bank also shares our commitment to contribute back to the communities in which we operate. Through its foundation, Beyond Bank has invested over $25 million in community partnerships and programs over the past 15 years.
How will our Members benefit?
Beyond Bank is committed to retaining the attributes that Nexus Mutual members highly value.
To ensure that we continue to deliver an exceptional personalised service to our members, we will retain:
- our brand;
- our branches;
- our connection to the ExxonMobil community;
- our people;
- local jobs and decision-making, and
- community involvement.
The merger will help Nexus Mutual achieve economies of scale in the way we operate, which will translate into an improved bank offering that includes better interest rates and fees. As part of Beyond Bank’s roadmap, new branches will be opened in Melbourne over the next 12 months.
We are currently undertaking further due diligence and plan to talk with our regulators to discuss the terms of the proposed merger.
We will share information with you over the coming weeks including further details of the planned merger and proposed member vote.
Your feedback is important
We will keep you updated via email and mail in the coming months, and will shortly be posting FAQs about the merger on our website.
Please don’t hesitate to contact me on firstname.lastname@example.org if you have any questions or would like to provide any feedback.
We believe that a merger with Beyond Bank is an outstanding opportunity for us to accelerate the growth of Nexus Mutual and enhance the benefits available to our members – now and in the future.
All Nexus Mutual directors fully support this merger and are committed to the ongoing success and growth of our business.
Thank you in advance for your continued support.
Chief Executive Officer