Credit unions continue to invest for growth

Credit unions continue to invest for growth

AUCKLAND, 30 MARCH 2016: Co-op Money NZ, the industry voice representing co-operatively owned credit unions and mutual building societies in New Zealand, is pleased to announce its continued investment in the infrastructure and capability that underpins the credit union and mutual building society sector.

As part of this ongoing investment in banking and payments infrastructure to support the valuable customer owned banking sector, Co-op Money NZ has applied for and been issued a principal licence by MasterCard® and has recently established a direct link to the global MasterCard processing network.

“This direct relationship has been a really important strategic step forward for our Members as it allows more cards to be used on our extensive ATM network, and provides the ability to more quickly innovate than if we were accessing the MasterCard network through other channels,” says Henry Lynch, CEO of Co-op Money NZ.

“Through Co-op Money NZ, Members have gained scale economies to more effectively compete against the larger Australian owned banks, and our new deeper relationship with MasterCard further leverages these scale economies to reduce operating costs for our Members.”

In the last three years, we have delivered for our Member credit unions and mutual building societies the AccessDebit MasterCard card, one of the first cards in New Zealand to feature the convenient and secure PayPassTM ‘Tap & GoTM’ contactless technology, launched a market-leading mobile app, revamped our internet banking platform, and over the next 18 months will be progressively transitioning most of our Members to the new tier one banking platform, Oracle FLEXCUBE.

“The level of credit union and mutual building society collaboration in New Zealand is world-leading, and this ability to work together to achieve scale and sector innovation is something that is being picked up on by other credit union systems around the world.”

“When it comes to payments, Kiwi consumers are well known for their swift adoption and appetite for new technologies. This provides opportunities not only for emerging payment technologies and innovations such as mobile payments as they develop, but also for aspirational partners like Co-op Money NZ, who seek to be market leaders and innovators in the payments space” says Peter Chisnall, Country Manager for MasterCard New Zealand.

Credit unions and mutual building societies are all licenced Non-Bank Deposit Takers by the Reserve Bank of New Zealand and have long been a crucial part of the New Zealand economy.

“Unlike the overseas banks that operate in New Zealand, profits made by credit unions and mutual building societies are retained in New Zealand and returned back to their members and their local communities. This way we ensure that the funds we create stay in and enrich the people of New Zealand,” concludes Lynch.

ENDS.

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