Top 100 CEO Interviews
Issue No. 31 - October/November 2006
Credit for good advice
All that is big, successful and innovative in financial services has a head office in the eastern states – right? Australian Central Credit Union has done a lot to defy this myth in 2005-06.
Australian Central MD Peter Evers is proud of his organization's inclusion in the Top 100 Index because it sounded a warning that SA companies are willing and able to compete nationally.
Australian Central had record-breaking financial results for 2005/06. A record profit of $13.7 million in 2006 was up by 6% on the previous year. Statistics like a 12% increase to $1.99 billion in member loans and growth in assets by a further 12% to $2.29 billion, combined with a wealth management business which has $782.3 million under advice, shows that this organization has a considerable impact.
Many up-and-coming financial services professionals, and returning expatriates, are seeking Australian Central out.
“Our move to a new corporate headquarters increases the image of our growth of the SA business” Peter says, “while the increased market share in the NT and WA markets signals our ability to expand.”
The wealth advice business introduced Australian Central into WA by acquiring a major financial planning player in that state; the operation there employs 35 staff.
In the course of this expansion Australian Central has invested heavily in people, customer (member) relationship management technology and product development, all aimed at enhancing its footprint in the SA market as well as in its interstate chosen markets.
“It has been a tough market with price-led competition,” Peter says, “at times compromising credit quality, so we have had to modify our approach to ensure we did not follow the path set by others.”
This comment is mainly directed at the lending market where Peter says risk management can be relaxed in order to win market share. The 'lo-doc' loan market for self-employed borrowers is typical.
