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Beyond Bank Australia has announced it is exploring a potential merger with another credit union that would expand its footprint further into regional NSW.
Beyond Bank Australia has announced it is exploring a potential merger with Family First Credit Union (trading as Family First Bank), in a move that would expand its footprint deeper into regional New South Wales and further consolidate the country’s mutual banking sector.
The two customer-owned banks confirmed they have signed a memorandum of understanding (MoU) to begin a due diligence process, which will examine how the merger could deliver benefits to their combined 340,000 members.
If successful, the merged entity would manage more than $11.3 billion in assets.
It would also extend Beyond Bank’s operations into the Blue Mountains, Lithgow, Bathurst, Blackheath and Mudgee — complementing the bank’s existing presence in South Australia, the ACT, Victoria, and other parts of NSW.
Commitments to branches, staff, and community
Both lenders have pledged to retain all existing staff and maintain their current branch network if the merger proceeds. The two organisations said they were committed to ensuring the merger strengthens, rather than diminishes, their regional presence.
The proposed tie-up would also see an expansion of Beyond Bank’s Community Rewards Program, alongside the establishment of a dedicated foundation focused on supporting the Central Tablelands region. According to the banks, these initiatives are designed to ensure profits continue to be reinvested into local communities and grassroots organisations.
Next steps
The Beyond Bank–Family First proposal will be subject to detailed due diligence, followed by approvals from the Australian Securities and Investments Commission (ASIC), the Australian Prudential Regulation Authority (APRA), and ultimately a vote by Family First members.
Both banks have said they will provide regular updates as the process progresses.
If successful, the merger could be finalised in 2025.
Announcing the merger proposal, David Marshall, chief executive officer of Beyond Bank Australia, said: “We’re delighted to have the opportunity to jointly build on our shared purpose and passion for community-driven banking. Both banks have long, proud histories and a proven track record of delivering financial wellbeing to our customers in Australia, wherever they live and our values and purpose are strongly aligned.”
Adam Marshall, chief executive officer of Family First Bank, said: “This partnership represents a thoughtful and strategic move that ensures our members continue to receive outstanding value and service. Beyond Bank shares our belief that financial institutions should work hand-in-hand with the people and places they serve. We’re confident this merger will help us deliver even more for our members and our region.”
Not the first merger Beyond Bank has pursued
This is not the first time Beyond Bank has considered a merger in recent months. In June 2024, it announced plans to combine with Police & Nurses Limited (P&N) — a deal that would have created an entity with around $20 billion in assets.
However, that proposal collapsed in September 2024 after P&N concluded that proceeding was “not in the best interests” of its members. Following a detailed due diligence process, P&N said undisclosed issues had been raised that prevented the deal from progressing.
Beyond Bank stressed at the time it was commitmed to remain strong and community-focused despite the setback, and hinted it would continue to explore strategic growth opportunities. The Family First Bank deal now appears to represent the next step in that strategy.
Consolidation among mutuals
The mutual banking sector has seen a steady stream of mergers in recent years as smaller institutions seek scale to compete with the major banks and meet rising regulatory and technology demands.
Notable mergers have included Greater Bank and Newcastle Permanent, which combined in 2023, and the union of Heritage Bank and People’s Choice Credit Union in 2023, now trading as People First Bank. Teachers Mutual Bank Limited also recently joined with Pulse Credit Union Limited, while G&C Mutual Bank and Unity Bank have pursued their own consolidation moves.
Beyond Bank itself has been active in this space, acquiring First Choice Credit Union in 2022. Family First, meanwhile, has retained a strong localised base across the Blue Mountains and Central Tablelands for more than 50 years, cultivating a reputation as a community-focused credit union.
The mutuals argue that consolidation allows them to pool resources, accelerate investment in digital services, and expand community programs, while retaining their customer-owned structure that differentiates them from the shareholder-driven big four banks.
You can find out more about how the mutuals are merging to maintain momentum in the August edition of The Adviser magazine, out now!
[Related: Momentum of the Mutuals]
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