Bank Australia has confirmed that it is in discussions to merge with Sydney-based Intech Credit Union.
The deal, if materialises, will lead to the creation of Intech Bank that will operate as a unit of Bank Australia.
The combined entity will target people employed in the technology sector across eastern states in Australia.
Bank Australia managing director Damien Walsh said: “Our strategy will be to use Bank Australia’s resources and customer owned banking expertise to assist Intech reach out to greater numbers of people working in the technology sector with the offer of a more attractive customer owned and responsible banking alternative to an investor owned bank."
The merger of the two entities is anticipated to be completed in early 2017, subject to approval by Intech’s customers.
“This merger reflects our ambition to achieve greater scale through ongoing strong organic growth and strategic mergers where they represent value to our customers. Of course our customers come from all walks of life including science; research, engineering and education all of which closely align to the technology sector,” Walsh said.
Intech Credit Union has multiple branches in Sydney and Melbourne, and manages about $300m in assets.