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Bank CEO resigns

by Annie Kane5 minute read
Bank CEO resigns

The long-serving CEO of a non-major bank is to resign at the end of this month, it has been revealed.

Jamie McPhee, CEO of ME Bank, has resigned from his position after being at the bank for more than a decade.

Mr McPhee commented: “After 10 and a half years at ME, I am looking forward to taking some time out before considering what I want to do next. The timing is right for me and it’s right for the bank...

“In deciding to call time, I know the bank is in a strong position financially and is well placed for the future, but that the industry challenges ahead and resulting need for change will require a long-term commitment.  

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“After 10 and a half years as CEO, I believe now is the best time to hand over the reins to give ownership of the bank’s post-COVID strategy development and long-term execution to a new CEO.”

He continued: “It has been a privilege to lead the bank and to deliver on our purpose and promise to help Australians get ahead. I am proud to have developed the bank and its offering, as it has grown in relevance, giving Australians a genuine personal banking alternative.”

The outgoing CEO added: “It has been a pleasure to have led such an outstanding team, one that really cares for our customers, and am pleased that the team’s commitment and hard work has been recognised by the many awards received for our products and services.”

The chairman of ME Bank, James Evans, confirmed Mr McPhee’s resignation, stating: “Jamie has made a significant contribution to the bank over the last 10 and a half years, transforming the scale and extent of ME’s retail offering to customers.”

Mr Evans noted that ME has grown its customer numbers from 234,000 to 542,000, and its assets by 50 per cent to almost $30 billion over recent years. 

“Importantly, Jamie has steered the bank through significant change in the industry and the macro economic environment. Jamie leaves with our thanks and best wishes for the future,” Mr Evans said.

Mr McPhee’s resignation will take effect from the end of July.

Chief financial officer Adam Crane has agreed to take on the role of acting CEO as the board commences the process for the appointment of a new CEO.

Earlier this year, the bank came under fire for its handling of a change to its redraw policy.

The controversial change drew widespread, cross-industry criticism after it reduced the amount borrowers could redraw from specific legacy mortgage products without forewarning customers. 

While permitted under ME’s terms and conditions, the policy decision was met with backlash from customers, brokers and the broader community. 

In response, ME announced that it would review its decision in consultation with affected customers, and later overturned its decision.

At the time, Mr McPhee issued an apology over the handling of the issue, stating: “We are deeply sorry; we were trying to do the right thing, but we went about it the wrong way.”

Mr McPhee sought to reassure customers that the bank had not removed funds from customer accounts or transferred any customer funds and did not make the adjustment for “liquidity reasons”.

“Our priority now is to help, support and service our customers,” he said at the time.

“We recognise that we need to do better – we can and we will.”

[Related: Bank backs down on redraw policy]

me bank

Annie Kane

Annie Kane

AUTHOR

Annie Kane is the editor of The Adviser and Mortgage Business.

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