NZCU Employees and NZCU Steelsands Look to Unite


NZCU Employees and NZCU Steelsands Look to Unite

The Board of New Zealand Employees Credit Union Incorporated (NZCU Employees) has been in discussions to join forces with Steelsands Credit Union Incorporated (NZCU Steelsands) to merge into one single credit union. This proposed merger will create scale efficiencies to better serve its member-owners.  As a result, the credit union will have approximately $35m in assets, serving around 5,000 New Zealanders. 

The goal has always been to help everyday Kiwis achieve their financial goals. This united approach will position NZCU Employees and NZCU Steelsands as a more competitive banking alternative that is 100% customer and Kiwi owned. It allows the credit union to provide improved solutions to assist even more New Zealanders to achieve their goals.  

Credit unions have been an important part of the New Zealand financial sector for over 50 years. This merger is a commitment to preserving the co-operative principles at the core of the credit union movement. 

All members of NZCU Employees are encouraged to be involved in the process and carefully read the information provided in order to make an informed decision as to whether they believe and support the vision of creating a better credit union that will ensure a stronger, more sustainable organisation for the future. 

All member-owners are invited to attend the upcoming Special Meeting on the 21st October, where the details of the proposed transfer of engagements will be discussed followed by a member vote. This allows opportunity to interact with Board, management team and staff. 

NZCU Employees truly value the business, ongoing support and loyalty of its member-owners. 

Members are encouraged to contact us directly at any time with questions regarding any aspect of the proposed transfer of engagements.  

NZCU Employees is proud to be a credit union and not a registered bank. 

Proposal to Transfer Engagements to NZCU Steelsands 


The Board of Directors of NZCU Employees recommends the merger of both credit unions to create one single credit union. The members of NZCU Employees are being asked to approve the transfer of engagements in order to create one merged entity.

Our recommendation 

The Board of NZCU Employees recommends that the members of NZCU Employees approve the transfer of engagements to NZCU Steelsands, subject to the approval of the Board of NZCU Steelsands and regulatory approval. Please refer to the enclosed Notice of Special Meeting and Postal Voting Form for more important information. 

What does this mean for members? 

  • This is a positive and exciting move for our organisation and our member-owners
  • It will result in a stronger merged credit union that will benefit all member-owners
  • Potential for better savings, investment and lending rates and fees
  • Scale (size) efficiencies allowing us to better serve you, our member-owners
  • Board appointments will be made that include representation from both merging credit unions
  • NZCU Employees name and brand will remain the same and the location of branch will continue to operate at Penrose

What do we need from members? 

Vote yes. 

We ask you to believe in and support a merger of NZCU Employees and NZCU Steelsands that will ensure a stronger, more sustainable organisation for the future. As a member-owner we need your vote to support this exciting initiative and to proceed. We invite you to attend the upcoming Special Meeting or provide your vote by way of postal voting (see the enclosed Notice of Special Meeting and attached forms). 

Why are we doing it? 

The formation of a larger, more resilient credit union will create increased opportunities to deliver improved products and services in the future. Both NZCU Employees and NZCU Steelsands have a collective vision to continue to develop a strong, competitive and sustainable sector that delivers on its purpose of ‘people helping people’ across New Zealand. For the last three years, NZCU Employees financial position has been deteriorating and there is a likelihood of breaching its capital ratio in the short-term. This would most likely result in the supervisor declaring an Event of Review, and requiring the Credit Union to take steps to improve its position including seeking out opportunities to transfer its engagements. In a worse case scenario, NZCU Employees could have a receiver appointed over it.  It is therefore important the transfer of engagements to NZCU Steelsands is successful. 

What are the benefits? 

  • Scale to deliver efficiencies, better pricing for savings, lending rates and competitive fees
  • Leveraging strength and capabilities of both merging credit unions
  • Access to resources for delivering better member-owner experiences
  • Providing branch locations throughout the Auckland region
  • Greater opportunities to invest in and leverage technology and increase our digital presence, whilst improving member access and experience
  • Cost savings and subsequent financial benefits are projected for members of the combined entity in future years
  • Regulatory compliance costs will be spread across a larger member base and risks mitigated through the single larger entity

If approved, how will the transfers and changes occur? 

  • All assets, liabilities and undertakings will be transferred from NZCU Employeesto NZCU Steelsands 
  • Please refer to Notice of Special Meeting and Frequently Asked Questions and Answers (FAQs) document for more information

Proposed process and timeline 

NZCU Employees Special General Meeting – 21 October 2020 

Transfers of Engagements takes effect – 03 December 2020