Credit union in niche play

Western Australia’s banking and financial advice sector is set to incorporate a new player in South Australian-based credit union Australian Central, following a visit to Perth by managing director Peter Evers and the board last week.

Mr Evers told WA Business News he believed there was a niche to be filled in WA in providing integrated, whole-of-life advice.

“We see the Perth and WA market being very strong economically and population growth to be strong over the next 20 years,” Mr Evers said.

Mr Evers claims that, despite the robust local market of financial institutions, a significant number of consumers are dissatisfied with existing services.

“We know there are credit unions and banks here. We see them as specialists, while our approach is an integrated relationship with business,” he said.

“We have done market research and we believe there is a key segment of the market that is looking for trusted, independent advice.”

The board’s visit was intended to cultivate a deeper and broader understanding of the local business culture, and the current housing market in WA, he said.

The visit included a tour of five key regions in Perth’s northern suburbs, and a presentation from the housing industry association.

“We want a better under-standing of the future direction of the market” Mr Evers said.

He said the company’s WA growth strategy, which aimed to forge a strong presence locally within three to five years, was based on extensive research. 

“We have a major project in Adelaide now, analysing population demographics and trends and future projections for Perth.”

“We expect to finalise these at the end of the 2007 calendar year. From there, we’ll make a strategic decision about where to locate.”

The foundations for the credit union’s planned expansion were laid in May this year, with the integration of two previously bought WA financial planning firms into one business, then relocated to Subiaco to form a specialist advice centre.

Financial Solutions was acquired in 2003 and Framework Financial Planning in March this year.

Currently, there are 8,000 financial planning clients and 4,500 corporate superannuation clients in Perth.

The company plans to invest in physical location access at the existing Subiaco property, initially, before exploring other localities.

Mr Evers said Australian Central was not drawn to WA by the resources boom, having already purchased the Subiaco property and committed itself to a move west.

“We made the decision to move here about five years ago. The resources boom has been a boost, but we were very confident in the WA economy and its future,” he said.