Members have approved People’s Choice and Heritage merger

People’s Choice and Heritage will embark on an exciting future together as Australia’s leading member-owned banking organisation after members of both organisations voted strongly in favour of their merger. 

The merged entity is planned to come into effect on 1 March 2023, following final regulatory approvals. 

Merger broker FAQs

  • Why are you merging?

    The Merger between People’s Choice and Heritage will provide the scale required to ensure our members continue to benefit from competitive financial products, personalised customer service and contemporary, secure banking technology – all with the care that only a strong, sustainable, member-owned banking organisation can provide.

    Growth through the Merger will help on every front, and there is no better partner for us than Heritage. Not only are we alike in size, we also share very similar values, goals and an absolute member focus. Please refer to our online Member Information Booklet for detailed information about the proposed Merger.

  • When are you merging?

    The proposed roadmap includes three phases for the Merger integration:

    One Team - The date on which the Merger will take effect is 1 March 2023 (or such other date as APRA determines). This will mark the official start (Day 1) of the combined mutual, when Heritage and People’s Choice will come together to form One Team. While this will mark the start of the combined mutual, both brands will be maintained for an initial period as the integration process continues.

    One Brand - In the second phase, a new single brand will be created that reflects the deep roots and values of both People’s Choice and Heritage.

    One Organisation - The final phase signifying the completion and full integration of our people, processes and systems.

  • Will you be keeping the brand name People’s Choice, if not what will your new brand name be?

    There will be an initial period where both brands are maintained and, following that period, a new single brand will be created that reflects the deep roots and values of both People’s Choice and Heritage.

  • How will your size compare to most major banks?

    The combined mutual will have the scale to offer more for members through competitive financial products, personalised customer service and contemporary, secure banking technology. We’ll be the ideal size - big enough to challenge the big banks and small enough to retain the personal touch. While we’ll be a significant financial institution in the top 10 Australian ADIs, we’ll still be 40-50 times smaller than CBA. 

  • Will we require new aggregator agreements?

    There will be no immediate changes to existing broker aggregator agreements when the Merger takes effect on 1 March 2023. The combined mutual will continue to operate under the existing brands of Heritage Bank and People’s Choice for an interim period. In the longer term, if any changes are to occur, we’ll communicate with our broker partners in advance. 

  • Will broker commissions be affected?

    There will be no immediate changes to broker commissions when the Merger takes effect on 1 March 2023. The combined mutual will continue to operate under the existing brands of Heritage Bank and People’s Choice for an interim period. In the longer term, if any changes are to occur, we’ll communicate with our broker partners in advance.

  • Will our accreditations automatically transfer?

    There will be no immediate changes to broker accreditations when the Merger takes effect on 1 March 2023. The combined mutual will continue to operate under the existing brands of Heritage Bank and People’s Choice for an interim period. In the longer term, if any changes are to occur, we’ll communicate with our broker partners in advance.

  • Will there be further Broker expansion plans?

    Continued expansion of our broker distribution network will be considered as we progress Merger integration.

Service

When the Merger takes effect on 1 March 2023, it will be business as usual and there will be no substantial changes to the existing processes and services we provide to our broker partners.  This includes changes to SLAs, loan automation, assessment and staffing levels. 

There will be no redundancies below executive level as a result of the Merger, and for many of our people there will be little change to their day-to-day roles and operations when the Merger takes effect.  You will still be dealing with the same BDM and team you are familiar with. 

We will work to integrate our two organisations into a single operation. It will take some time to fully integrate systems, technology, products and services but, as integration is achieved, we will then be able to provide significant benefits to members.

As we progress with the Merger integration, if any changes are to occur, we’ll communicate with our broker partners in advance.

Products

There will be no immediate changes to products offered to  People’s Choice members following completion of the Merger.  In the longer term, it’s expected that our products may change and that the combined mutual will be able to offer our members more products and services.

Product alignment will occur over time, and the combined mutual will provide members with the required notice if any changes are made to their products as a part of the product alignment process.

The impact of the Merger on banking services and products is discussed further on page 48 of the Member Information Booklet.

Policies

There will be no immediate changes to lending policies as we’ll continue operating as two separate brands for an interim period. As we progress with the Merger integration, if any changes are to occur, we’ll communicate with our broker partners in advance.

Process

PEXA settlements

We are currently working through the PEXA process and will share this information with you shortly.