RACQ to enter banking market
RACQ and QT Mutual Bank today announced plans to join forces. The proposed merger with QT Mutual Bank will establish a banking subsidiary within the RACQ Group, alongside its assistance, insurance and lifestyle operations which service more than 1.5 million members across Queensland. RACQ Group CEO Ian Gillespie and QT Mutual Bank CEO Steve Targett said the vision was to use the strong RACQ brand and resources along with the banking expertise and products of QT Mutual Bank to establish a highly scale-able, customer-owned banking platform which could achieve significant growth and expansion. "We want to be a trusted alternative to the shareholder-owned, profit-driven banks," Mr Gillespie said. "The merger will offer greater benefits to members of both organisations, with a highly compatible suite of premium products and services and a common focus on delivering exceptional service and value." If successful, the formal merger of the two organisations is expected to be completed by the third quarter of 2016. "RACQ wants to diversify into banking while QT Mutual Bank wants scale and investment in technology to achieve growth, that's why this deal makes sense," Mr Gillespie said. "Together we can achieve things for our members that we can't do on our own." Mr Gillespie said the time was right to invest in building a larger scale alternative to the traditional banks utilising the mutual banking business model with its focus on returning value to members rather than maximising profits for shareholders, and the inherent trust and confidence this brings. "We'll be committed to offering members honest, easy and great value banking products and services, without any hidden fees or excessive charges," Mr Gillespie said. "By adding banking to our already strong insurance and assistance offers, our combined membership will benefit from great service, better value and a deeper relationship overall."