By Julian Bajkowski

The trend of public sector credit unions expanding into member banks is continuing in earnest after Victoria’s Police Credit recently rebadged its longstanding law enforcement branding to become BankVic as the junior institution pursues greater growth.

The institution this week officially relaunched its rebrand to its 94,000 members, families and friends it says are employed by the police, health, emergency and public services.

Member banks have become an increasingly attractive offering to eligible customers as they target more personalised financial services as a point of differentiation from the big banks.

The smaller institutions are seeking to capitalise on a sentiment that favours keeping capital closer to the community they serve rather than focusing on delivering increased dividends to shareholders.

The move comes as big banks increasingly come under fire from unions for offshoring call centre staff and back office staff for their operations.

“We provide financial products that are competitive to the big four banks and are delivered with a personal service to all our members. Everyone employed at BankVic, including our call centre staff, is working right here in Victoria and they understand the particular needs of our members,” BankVic chief executive Peter Kempster said.

Mr Kempster is not backing away from BankVic’s member-owned status as a selling point.

Part of the new bank’s pitch to customers is that it uses its earnings “to reinvest in products and services for members and to support a wide variety of police, health and community organisations such as the Blue Ribbon Foundation and Limbs 4 Life.”

Mr Kempster said BankVic does not pay dividends to shareholders and that members therefore “enjoy low fees and standard variable home loan rates considerably lower than the major banks.”