Credit Union expands to keep pace with changing face of city

25 October 2013

Credit Union expands to keep pace with changing face of the city

Christchurch is providing record growth for NZ Credit Union South (NZCU South), which opens a new Sydenham branch on Wednesday 30 October.

The not-for-profit has seen 50% membership growth in Christchurch over the past twelve months, and has outgrown its original Hornby home - bucking trends for its branches across the rest of the South Island.

Chief Executive Andrew Leys says the sense of upheaval that the quakes have caused, and new opportunities on offer in the city, have seen a return to the traditional values that are at the heart of the union’s philosophy.

“Credit unions were originally set up by ordinary people who were inspired to do something to help their community. They started when people set up small savings clubs which generated a pool of funds that were loaned to other members for good purposes.”

Andrew cites the example of one of the very first loans made by the Nelson Credit Union (now part of the NZCU South) to an Italian Migrant family, in 1962.

“The family didn’t have the language skills to secure employment, and so they established their own market gardens on a plot of land that eventually grew into a significant business and landholding. Their son went on to be Mayor of the city. I reflect on that, and the work that we do now, and it’s exactly the same.”

“Fillippino workers, for example, are encouraged to come to New Zealand to help with the rebuild, and we have a huge need for their services. They leave their homes, their families, their children to be here, and airfares, visas and so on can cost them around $10,000. They sacrifice so much - but because they don’t meet trading bank criteria, overseas banks charge them crippling interest rates - between 35% and 65% - and very high transaction fees.”

NZCU South’s solution involves flat-fee finance packages with an interest rate of 13.95% - and close working relationships with, and support for, refugee and migrant groups.

While overseas workers may be some of the most visible growth areas right now, more born and bred New Zealanders are also choosing a more values oriented, community focused financial institution for their banking needs.

“There’s a real hunger for organisations that share peoples’ own values set, while still providing the levels of customer service they’d expect from a commercial entity.”

ENDS

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