POLICE & Nurses Credit Society chief executive Fred Huis says he’s identified a glaring hole in Western Australia’s banking sector.
“Western Australia is the only state in the country that doesn’t have its own bank,” Mr Huis said.
While the big four banks have maintained a constant presence, the mid-tier of WA’s lenders have been in a state of flux since Town and Country Building Society was acquired by ANZ in 1990, the same year Police & Nurses was established.
In 1994, the bank most would associate closely with WA, Rural and Industries (R&I) Bank, was renamed Bankwest.
A year later it was bought by the Bank of Scotland, which sold half the shares to the public and listed the banl on the ASX.
In 2001, Bank of Scotland bought the rest of Bankwest.
That same year, Challenge Bank was acquired by Westpac, as the field of smaller institutions in WA’s banking landscape thinned.
Midway through the past decade, however, a flurry of entrants brought new life and activity into the market.
In 2006, Statewest Credit Society merged with Home Building Society, only to merge with Bank of Queensland in 2007.
Also in 2007, St George Bank opened its doors in WA and then was taken over by Westpac in 2008.
That year also saw the Bank of Scotland sell Bankwest back to Australian interests, with Commonwealth Bank of Australia adding the brand to its portfolio.
United Credit Union merged with Community CPS in 2008, while newer, mid-tier entrants to the market included Suncorp Bank, CUA, Australian Central Credit Union and NSW Teachers Credit Union.
The one constant, it appears, has been Police & Nurses. But Mr Huis said that was about to change.
He said the lack of a true, WA-owned and managed banking institution created an opportunity for Police & Nurses to step into that niche.
The ball is rolling on plans to rename Police & Nurses P&N Bank – a move Mr Huis says is a logical step to attract new members and to eliminate misconceptions around who can bank with the institution.
Discussions are under way with the Australian Prudential Regulation Authority, as well as a comprehensive consultation process with Police & Nurse’s members.
Despite the name change, Mr Huis is conscious that Police & Nurses should not be thought of in the same ilk as the major banks.
“Our approach and our philosophy in servicing our members are very different to a major bank’s,” he said.
“That’s the message we are trying to get across, it’s a very different business model.
“Our motivation is different. Banks have to raise the maximum profit possible so they can pay the highest possible dividend to increase its share price.
“We don’t have those challenges; our only challenge is to make sure that we do the best service by our members.”
