The University Credit Society Limited
Y E N O M S R E T T MA Summer 2014/15
Unicredit celebrates 50 years at AGM
In This Issue: Unicredit’s 2014 AGM... 50th Anniversary Update... $1,000 Referral Offer Extended...
A Message from our CEO Dear Members, Welcome to the Summer Edition of Money Matters. Since our last edition we have held our Annual General Meeting. It was terrific to be able to meet and talk to a number of our Members. For those who were unable to attend I have provided below an extract from my update to Members delivered on the night. “2014 continued to be a period of low interest rates. The RBA held its cash rate steady at 2.50%, with last change in this rate being August 2013 – the RBA continues to project an extended period of low and stable rates – indeed in recent weeks there have been some discussions as to potential for a further rate reduction. The current interest rate environment is at historic low levels. Similarly home loan rates continue to be a historic low levels. Competition remains fierce for new borrowers, pushing rates even lower. The number of competitors is ever increasing - not just the traditional bank and credit unions but a greater number of non bank organisations - and while low interest rates is a benefit for borrowers, property investors and the housing market more generally - it of course has the opposite effect for cash investors were returns on bank deposits have fallen and remain at low levels. At Unicredit we endeavour to balance the interests of our borrowers and depositors. But of course need to grow our loans, as this is where we generate the majority of our revenue. This revenue needs to increase to offset the increasing costs of running a financial institutional - whether this be staff costs, technology costs or costs to ensure we meet our ongoing regulatory obligations. To attract new members means we need to meet the market rates; which in turn can impact on profit margins and the rates we are able to pay on deposits. In terms financial performance - revenue growth was positive - largely a flow on from loan growth over the past 12 -18 months. We have seen growth has slowed over the past 6 – 9 months, as competition has increased, particularly from the larger banks. Overall a solid profit growth was achieved. We were pleased that this was achieved without any increases to Member fees. During the year we conducted our first Member survey for a number of years – while the satisfaction and advocacy results were pleasing - the feedback and ideas received from members was really important for us – Of these suggestions - there are a number we have been able to implement; some we are working on; and some that require to better communicate with members. Although a lot of effort has gone in the meeting the competition in the home loan market, there a range of other initiatives across the business, including working with our Insurance partner QBE; developing an new Unicredit branded debit card with optional payWave, a $1,000 referral opportunity for members and an updated student package. Operating a modern financial services company requires us to provide our members with access to products and services via an ever increasing range of channels. This requires ongoing investment in infrastructure such premises & technology - we continue to look at ways to be able deliver these requirements to members in an effective way – recognising the changing needs of our members. For example, we are working with our technology partner to look at our mobile technology and how we can enhance this – similarly we will shortly be closing our UWA campus branch – where after a long review we were unable to justify the costs to members of 2 branches within 500- 600m of each other. While having reliable and convenient systems is important for our members - we believe that it is people that make the difference. During the year we have increased the investment in the training and development of our people – going forward we will continue to work with our staff to help them achieve their career aspirations and continue to improve our member service. Unicredit began through its association with the University and today we continue to focus on the Tertiary education sector to foster and grow our membership. We are pleased to be able to support various aspects of the University calendar – and while this historically focussed on where we are physically located – increasingly we are looking for opportunities to engage with the broader post secondary education sector. I have been in this industry for more than 30 years and it is fair to say that a lot has changed over this time – and it continues to change at an ever increasing pace. The environment we operate in provides many challenges and the Chair (Emeritus Prof. Bill Ford) mentioned in his address earlier the work the Board is undertaking to look at the best interests of members into the future. In the meantime the management and staff of Unicredit remain committed to providing excellent service to our members.” On behalf of everyone at Unicredit can I wish all Members a happy and safe festive season and a prosperous 2015. Yours sincerely, Ross Moulton, CEO
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Annual General Meeting - 27 November 2014 Unicredit held its 2014 Annual General Meeting at the University Club on the grounds of the University of Western Australia on the evening of Thursday 27 November. The turnout (in keeping with AGM attendances in recent years) was again fantastic, and all attendees (which included members, staff, board and special guests) took the opportunity to mingle and network after the meeting over a few preChristmas drinks and platters of amazing food provided by the University Club. There was a special focus on Unicredit’s 50th anniversary this year with a number of mentions throughout the meeting and for the interest of all who attended there were also a number of displays; including one showcasing “Perth in 1964” (our year of origin) and another highlighting some of the contributions and stories sent in by our members. One of the highlights of the evening was the presentation and cutting of a very delicious 50th anniversary cake (adorned with sparklers no less), which provided an excellent photo opportunity (and it tasted amazing!). Dr Frank Lincoln, current Director and one of our original members had the honour of cutting the cake and making a wish. Thanks Frank! Unicredit thanks all members and special guests that came along to make the evening a success, and we look forward to seeing you again at next year’s meeting and social function. Please see below for a small sample of photos taken on the night...
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50th Anniversary Update As our 50th anniversary year draws to a close and we slip into another warm West Australian summer, we would like to once again thank all members for your ongoing membership and support of the organisation. Without you we would simply not exist. Unicredit is very proud to be able to continue providing real choice for our members, and indeed all West Australians, in the form of competitive, relevant and flexible financial products and services with fair fees and great rates, and all delivered with an outstanding level of personal service. It has been a very busy year and we have delivered a number of special promotions and activities throughout, all with the aim of giving back to members.
50th Anniversary Member Contribution Prize Winner: Ms Pamela Stynes of Melville. You may recall at the start of the year we invited comment and contributions from all members – personal/family stories, newsletter articles, news clippings, photos, old newsletters and any other documents that might help to shed light on our history. The response was very positive. Pamela sent us an email in February 2014, detailing her early experiences with Unicredit and how we were able to approve her a short-term loan when a Bank would not. That in turn has led to a long term membership of over 26 years! Pamela shared a few humorous stories as well, and her email was adjudged by the Unicredit management team as being worthy of our member contribution prize of $500. Congratulations Pamela!
Christmas Saver Golden Giveaway Promotion Winner: Ms Maureen Russell of Bull Creek. Members that opened new Christmas Saver accounts over the months of February and March 2014 were automatically entered into a competition draw to win a $500 cash bonus giveaway to be credited to their new Christmas Saver account before Christmas 2014. Terms and conditions applied including the proviso that they have a balance in this account of $500 or more on 1 December 2014. The winner was Ms Maureen Russell of Bull Creek. Congratulations Maureen, we trust you spoil yourself and your family with your bonus... and thank you also for your positive comments about Unicredit!
50th Anniversary Car Loan Special Promotion Winner: Mr Stewart Ford of Innaloo. In April & May, members that applied for a car loan with us over those months were automatically entered into a competition draw to win a V8 race car drive/ ride experience at Perth’s Barbagallo Raceway! The loan had to be approved and funded by 30 June to be eligible. The winner was Mr Stewart Ford of Innaloo who has been a member for 13 years. Congratulations Stewart, we hope you enjoyed the supercar experience!
Member Morning Tea - June As detailed in last edition of Money Matters, we held a special morning tea event in June for some of our original and longest-standing members. Although it has been said before, we will say it again - we cannot thank these members enough for their efforts back in 1963/1964 to establish Unicredit and help create the organisation we see today. You are all very much appreciated and your legacy lives on!
To all our valued members, thank you again for your continued support and membership of the Society. We look forward to serving you for another 50 years and beyond!
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New and improved Visa Debit card - now with payWave Fantastic News for Unicredit members! We are very excited to announce the launch of our new and improved Unicredit Visa Debit card - which now comes with payWave and a fantastic new Unicredit branded design! Your Visa Debit payWave card gives you access to online, overseas, over-the-phone and point-of-sale transactions, as well as access to rediATM, one of Australia’s largest ATM networks plus it’s accepted at over 30 million locations worldwide...
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12/1 4 SAM SAMP LE R
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Plus with payWave, you now have the added convenience of being able to ‘tap and go’ for purchases under $100 without having to enter a PIN. No PINs, No signatures, No wasting time! You don’t even need to wait for a receipt unless you really want one. Members should note that your new or replacement card will be delivered with payWave deactivated for security purposes (meaning you may have to enter a PIN when performing transactions), and you’ll be pleased to know that it can be left this way if you prefer. Upon receipt of your card you simply need to contact Unicredit to activate payWave then you’ll be ready to experience the convenience when you next make a purchase under $100. Easy!
How secure is payWave? Visa payWave-enabled cards are as secure as any other Visa chip card. They carry the same multiple layers of security and it is not possible for your card to be ‘accidentally’ charged - it will only process once an authentic transaction has been initiated in a retail store. Furthermore, for your security in the case of lost or stolen cards, the daily payWave transaction limit is set at 5 transactions of up to $100 each to a maximum of $500 per day. This can be updated at your request by contacting Unicredit.
How does it work? Step 1 Look for the contactless symbol at the point of sale. Step 2 The cashier enters the purchase amount into the terminal. This amount is displayed on the Visa payWave reader. Step 3 When the first green link blinks, hold your card over the reader at close range. (i.e. less than 4 cm from where the logo appears). Step 4 Four green lights appear when the transaction is complete. This takes no longer than half a second. You can choose to have a receipt printed, but this is optional. No signature or PIN is required.* *For purchases under $100.
We trust you enjoy the time savings and convenience that payWave brings. Remember, payWave is optional and you can leave the card as PIN only if you wish.
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The Financial System Inquiry - What is it? The 2014 Financial System Inquiry (‘FSI’) headed by former CBA boss David Murray is the first inquiry of its type since the 1996-97 Wallis inquiry. The FSI Panel had delivered its interim report on the system and called for further submissions on this issue. The Customer Owned Banking Association (‘COBA’ - of which Unicredit is a member) has played a leading role in calling for a stronger, fairer banking system. COBA had successfully lobbied for an FSI in 2013 through its Balance Banking campaign. In 2014 COBA made a detailed submission to the FSI calling for a simpler, fairer, sustainable banking system.
COBA’s proposals consideration include:
for
> A levy on the big four banks to pay for the taxpayer funded subsidy they receive; > Better consumer information so Australians make informed banking choices; > A banking regulator more focused on fostering competition; > A tax cut on deposits to lift national savings; and > Equitable treatment and recognition of the customer owned banking model.
Implementing these recommendations would ensure Australia’s financial system can achieve genuine competitive Current banking rules are making the big banks bigger, neutrality between listed ADIs and customer owned ADIs to which is putting the Australian economy at greater risk and deliver effective competition and consumer choice. leaves consumers worse off. COBA regards winding back the dominance of the big four banks and promoting competition Customer owned banking delivers and competitive neutrality as key objectives of the FSI.
diversity and supports system stability.
COBA believes the inquiry should address the implicit guarantee currently enjoyed by the big four banks, and the With 100 institutions and more than 4 million customers, the sector is already taking up the challenge to the major impact of the current regulatory environment in the banking banks. But true competition can only be achieved if barriers sector on concentration and competitive neutrality. and subsidies are removed, so smaller players don’t have to compete with one hand tied behind their backs. It should also examine the appropriate treatment and recognition of the ‘customer-owned’ banking business model For more information, please visit the COBA website at in the corporate, prudential and taxation regimes. http://www.customerownedbanking.asn.au/
NO ESTABLISHMENT FEE On any Unicredit home loan application received before 28 February 2015*
Save $650!! Offer has been extended for the Summer... don’t miss out. Ask us for more information today. *Terms & Conditions apply
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Member Referral Payment Offer Extended! We’ve extended our home loan referral payment offer until 28 February 2015. If you’re happy with Unicredit, tell your family & friends. We’ll give any member a referral payment of $1,000 for any home loan application over $250,000 from one of your friends, colleagues or family members that is successfully approved & funded before 28 February 2015. Simply ask the applicant to mention your referral when they apply!
$1,000 Referral Payment Offer Applicable on new Home Loan applications of $250,000 or more that are approved and funded before 28 February 2015 Terms & Conditions apply.
All loan applications are subject to Unicredit’s normal lending criteria. Terms and Conditions, Fees and Government charges apply. To help you decide if this product is right for you, Unicredit recommends you read our current Fees and Charges Schedule and our current interest rate information, available online at www.unicredit.com.au or from any Unicredit branch. Current referral payment offer expires 28/2/15 and excludes refinance of existing Unicredit loans.
Current Interest Rates Home Loan rates current from 7 November 2014: Home Loan
Interest Rate
Comparison Rate
12mth Introductory Fixed Rate Home Loan
4.65% p.a.
4.83% p.a.*
Standard Variable Rate Home Loan
5.25% p.a.
5.25% p.a.*
2 Year Fixed Rate Home Loan~
4.69% p.a.
5.14% p.a.*
3 Year Fixed Rate Home Loan~
4.89% p.a.
5.15% p.a.*
4 Year Fixed Rate Home Loan~
5.25% p.a.
5.25% p.a.*
Limited time - offer expires 28 Feb 2015!
Term Deposit rates current from 5 December 2014: Amount Tier
3 month
6 month
9 month
12 month
24 month
$500 < $5,000
2.35%
2.40%
2.45%
2.50%
2.55%
$5,000 < $20,000
2.85%
3.05%
3.10%
3.15%
3.25%
$20,000 < $50,000
3.15%
3.20%
3.20%
3.30%
3.50%
$50,000 < $100,000
3.15%
3.20%
3.20%
3.30%
3.50%
$100,000 < $250,000
3.20%
3.25%
3.25%
3.30%
3.60%
$250,000 < $500,000
3.20%
3.25%
3.25%
3.30%
3.60%
$500,000 > uniteller.unicredit.com.au/smartphone
Things you should know
The products and services featured in Money Matters do not take into account your personal needs or financial circumstances and you should consider if they are appropriate for you. To decide if a product is right for you, Unicredit recommends reading our ‘Information - Terms & Conditions: savings accounts, fixed term deposits & account access’ brochure which is available from any Unicredit branch or online at www.unicredit.com.au. All loan applications are subject to Unicredit’s normal lending criteria. Terms & Conditions, and Fees and Government charges apply. Current interest rates, comparison rate schedules, and current fees & charges schedules are available from any Unicredit branch or online at www.unicredit.com.au. The University Credit Society Limited ABN 90 087 661 901 AFSL/Australian Credit Licence No. 244168.
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