News

Australian Military Bank welcomes new CEO

Australian Military Bank Chairman, John Brooks today welcomed new CEO Darlene Mattiske-Wood, replacing John Ford who exits the business after seven years in the role.

“We are delighted to welcome Darlene to the bank and look forward to her leadership building on our substantial steps forward in digital innovation and member experience” says Brooks.

Most recently Deputy CEO for People’s Choice Credit Union since 2016, Ms Mattiske-Wood brings over twenty years’ experience in executive leadership to Australian Military Bank with fifteen years’ experience in the Mutual sector.

Ms Mattiske-Wood has extensive Strategic, Operational and People and Culture expertise. She has also held several Board positions including current director with COBA (Customer Owned Banking Association) and previous Chair of Mutual Market Place representing People’s Choice in the Joint Venture Procurement Company between CUA and People’s Choice.

Commenting on her appointment Ms Mattiske-Wood said, “We are member-owned, our purpose for being is ‘our members’ and we have a tremendous contribution to make to the financial wellbeing of our ownership. There is no confusion about our key objective or which stakeholders we serve. We are member-first and this clarity will be informing all dimensions of my leadership of Australian Military Bank” says Ms Mattiske-Wood.

“I can see many opportunities to build on past success” she continues, “Last month the bank announced impressive half yearly financial results that provide a strong basis for the banks future growth through its digital-first strategy. Further, the bank is in the first phases of participation in The First Home Owners Deposit Scheme as well as its on-going participation with Department of Defence as one of only three approved Defence Housing Ownership Assistance Scheme (DHOAS) participants” she says.

Ms Mattiske-Wood assumes executive control of Australian Military Bank following its recent 60th anniversary celebrations. She concludes, “The chance to serve our members is a privilege not a right and I regard a legacy of 60 years’ service and our members trust as our most valuable asset”.

Read the full press release here.

Australian Military Bank launches flagship digital-first branch at Williamtown RAAF base.

Australian Military Bank opened its new flagship digital-first branch at Williamtown RAAF base on Thursday February 20th. Australian Military Bank CEO John Ford officiated with honoured guest, Group Captain Peter Cluff, Senior Australian Defence Force Officer from RAAF Williamtown commemorating the opening by unveiling the celebratory plaque.

The new technology-focussed branch has been developed in line with Australian Military Bank’s recent digital transformation to capture the best of the gains won by major banks and neo bank disruptors and customise them to their ADF membership. The new Williamtown branch is the first new-concept branch that integrates the traditional branch functionality with a member-facing digital banking experience.

“We are looking forward to supporting our Williamtown members in making the most of their money using all the benefits of their service in our new branch” says John Ford. “As a mutual organisation we are owned by the women and men of the defence community and care for their financial wellbeing across all stages of life, from those currently serving, through to members transitioning out of the ADF” says Ford. 

Read the full press release here.

Australian Military Bank welcomes Government action on veteran suicide

The Australian Military Bank has welcomed the announcement by the Government to appoint an National Independent Commissioner into veteran suicide and a separate Veteran Family Advocate.

Australian Military Bank Chair, John Brooks said today, “Australian Military Bank echoes the statement made by RSL National President Greg Melick, welcoming the announcement and confirmed that the Bank will use its strong relationship with the serving members of Defence and veterans to assist the commissioner in any way possible to curb the scourge of veteran suicide”.

He continues, “The loss of any member, or former member, of the Defence Force is tragic. Those who have been prepared to make the greatest sacrifice for our nation deserve the best care possible as they transition from service life. Veterans face many challenge as they re-assimilate into the community and we stand ready to assist where we can with this transition.

Australian Military Bank is a 60 year old member-owned Bank with national membership of nearly 60,000 and branches situated on many of Australian’s largest military bases. Brooks concludes, “We take a keen interest in this action as the rate of veteran suicide is of critical concern to our community”.

Read the RSL National press release. 

Digital-first strategy proves winner for Australian Military Bank

Read The Australian news article here.

First Half Year Results Announcement

While many of the mutual and neo banks are driving their marketing with the flavor of innovation Australian Military Bank has substantiated its bottom line value with strong first half results.  The niche mutual bank is exceeding its NPAT budget (125%) and is growing its loan portfolio at two times system growth* despite margin pressures in an ultra-low rate market.

According to Australian Military Bank’s CEO, John Ford, “we think there are a lot of positives out there for small niche banks with efficient business models, technology has never been more affordable and the Federal Government’s pro-competition policies are proving meaningful for smaller players”.

According to Ford “Our strong first half results are a result of above system loan growth, effective margin management and strong cost controls.  Our year on year non-interest expense has reduced by – 4% attributed to our digital transformation strategy.

Our transformation to cloud based computing is paying many dividends for us as our organic growth continues unhindered by branch rationalization, in fact our net membership growth is around 5% originated through digital channels utilizing straight through processing.”

Ford believes that while the major banks may have been heavily distracted since the Hayne Royal Commission new legislation and schemes will prove beneficial to AMB and its membership, “the introduction of comprehensive credit reporting data has been most helpful for our responsible lending. We see CCR as a forerunner to Open Banking which we expect to be even more beneficial to members, prospective members and the Bank.   Similarly, the First Home Buyer Deposit Scheme will help young people into the housing market that might not otherwise be able to do so”.

Perhaps the most important legislative change for mutual banks, according to Ford, has been the Treasury Law Amendment (Mutual Reforms) Bill 2019. “We, along with other Mutuals, have the potential to grow more quickly but are hamstrung by access to capital. The introduction of a friendly ‘Mutual Capital Instrument’ will help the Bank in time to raise additional capital to underpin our growth”.

John Ford will step down as CEO of Australian Military Bank at the end of February after 7 years of service. “It’s been a privilege to serve as CEO during a period of substantial transformation and I look forward to the Bank’s ongoing success”. Darlene Mattiske-Wood will commence as the new CEO from 2 March 2020.

Key Results Summary – YTD December 2019

Total assets: $1.425 m

Loan growth: 1.96 x System*

Expense growth (YoY): -4.0%

NIM: 2.09%

Net Member growth (annualized) 4.8%

*Source: APRA November YTD

About:

Australian Military Bank is a member-owned Mutual bank that has been helping Australian Defence personnel and their families make the most of their money since 1959. As Australia’s longest serving Defence financial institution, AMB specialises in service and products that integrate into the unique aspects of life in the armed services.

As a mutual organisation, Australian Military Bank is run for the benefit of members who are also our shareholders. Australian Military Bank;

Timeline:

• 1959: Founded as the Navy (Civil Staff) Co-op. Ltd.
• 1971: Membership extended to civilian employees of the Army and RAAF in NSW
• 1983: We merge with Army Defence (NSW) Credit Union and rebrand as Australian Defence Credit Union (ADCU)
• 2008: Selected by Department of  Defence as one of three DHOAS home loan providers
• 2014: Achieve in excess of $1 billion funds under management
• 2015: Membership exceeds 50,000 and vote passed to change our name to Australian Military Bank
• 2018: Launch of new Core and Digital Banking offerings 24/7
• 2020: 56,000 members, 4 million+ logins 

HMAS Choules back in Mallacoota

As HMAS Choules returns to Mallacoota we would like to acknowledge her crew’s outstanding effort not only in the civilian evacuation on New Years Eve, but also their prompt return to deliver vehicles, supplies and assist efforts to re-open roads and restore access to the community. Along with NV Sycamore and HMAS Adelaide, Choules has joined in a prodigious effort from ADF to lend a hand to fellow Australians. We thank you sincerely for your service.

Australian Defence Reservists called to assist with frontline and evacuee assistance

Over the weekend the deepening bushfire crisis saw Australian Defence Reservists called to action to assist with frontline and evacuee assistance. We wish all those serving the very best for their deployment and wish them a safe and prompt return to their families.

We would like to warmly congratulate Defence on their live-saving actions to date with emergency evacuations rescuing thousands of Australians from harm’s way. We understand the added reservist numbers will substantially increase defence capacity and support the welcome extended on bases which have been opened to evacuees.

For any of our members directly impacted by the fires please reach out if you are in financial difficulty. We can offer financial hardship assistance and we encourage you to contact us as soon as possible on 1800 855 810.

Wishing you a safe and prosperous 2020

Australian Military Bank would like to wish all our members a safe and prosperous 2020.

Our special thoughts are with those members currently serving overseas separated from family and friends.  We would like to take this opportunity to thank you for your vigilance and express our gratitude for your service as we enjoy this holiday period. We wish you a safe and speedy return to your loved ones.

We are also saddened that some members are facing terrible hardships in recent weeks as a result of the bushfire crisis that has gripped Australia. The effects of this tragedy are wide-ranging and with potential financial impact. If you have been impacted by bushfires and in financial difficulty we encourage you to contact us as soon as possible to discuss how the Bank can assist you through this period on 1800 855 810.

Australian Military Bank Announces New CEO

Australian Military Bank Chairman John Brooks today announced its new CEO positioned to leverage the Bank’s investment in digital and lead the next chapter with a focus on Member Experience.

Darlene Mattiske-Wood to take up the role of CEO Australian Military Bank.

“Following an extensive national search, we can announce that Darlene Mattiske-Wood will succeed John Ford as the new CEO from the 2nd March 2020,” Chairman John Brooks said.  “We consider that we are very fortunate to welcome Darlene, who has more than 20 years experience in strategic and executive leadership, 15 of these within the Mutual sector, most recently as the acting and then deputy CEO for People’s Choice Credit Union,” he said. 

“Darlene’s extensive experience in strategic leadership and transformational change, with strong expertise in people strategy and culture within one of the largest Mutual Banks in Australia will support Australian Military Bank as we continue to operate in an extremely competitive environment with a demanding regulatory regime,” said John Brooks.  “Darlene’s direct experience in leading, developing and delivering an aligned internal culture to deliver a member focused operating model. This will give strength to our recent business model transformation including our digital and technology investments.”

“We see Darlene’s strong member values and experience as a natural fit to take us into our next phase of growth, as we continue to transform to meet the current and future expectations of our members,” said Chairman Brooks.

Chairman Brooks also thanked former CEO John Ford for his valuable contribution to the Bank over the past 7 years.  “John has been very committed to the success of Australian Military Bank and has positioned the Bank strongly for the future. During his tenure as CEO we successfully converted to mutual bank status, returned to positive net membership growth, successfully re-tendered for the DHOAS scheme, lead a digital transformation journey, converted to a modern and open banking system (on time / on budget) and attracted an investment grade corporate rating. In the interest of a smooth transition, John has agreed to remain with the Bank until the end of February 2020.” 

Darlene Mattiske-Wood

Darlene was appointed as People’s Choice Deputy Chief Executive in February 2016.  Along with the deputy CEO role, her position included Chief Strategy, Marketing and People Officer responsible for the development and implementation of the People’s Choice Strategic Plan as well as the leadership of the credit union’s strategies for People and Culture, Marketing, Member Strategy, Product Governance and Member Segmentation, Communications & Public Affairs.  In addition, Darlene has played the lead role in the People’s Choice Transformation for the development, roadmap and delivery of the multi, million dollar digital and member centric target operating model. 

Darlene has extensive Strategic, Operational and People and Culture expertise.  She has also held several Board positions including current director with COBA (Customer Owned Banking Association) and previous Chair of Mutual Market Place representing People’s Choice in the Joint Venture Procurement Company between CUA, the largest Mutual Bank in Australia and People’s Choice.

Darlene’s qualifications include: The advanced management program with Harvard University in 2018, a Diploma in Management and a Bachelor of Management as well as a graduate Diploma in Human Resource Management.  She has received the following external recognition:

• The 2016 Telstra Business Women’s Award, Corporate & Private South Australia;
• Finalist in the 2017 National Retail Banking Awards for Executive of the Year;
• Two AHRI Awards (Australian Human Resource Institute) for People Leadership and People Strategy.

Australian Military Bank selected to offer the First Home Loan Deposit Scheme

Australian Military Bank is proud to announce that it has been selected by the National Housing Finance and Investment Corporation (NHFIC) to offer home loans under the Federal Government’s First Home Loan Deposit Scheme (the Scheme).

Our selection as an approved lender to the Scheme will enhance our ability to help first home buyers enter into the property market whilst saving thousands of dollars by avoiding the cost of Lenders Mortgage Insurance (LMI).

“Acceptance into the Scheme enables us to help members of the Defence Community become homeowners,” Chief Executive Officer John Ford said.

“The First Home Loan Deposit Scheme is a great way of helping more members purchase a home sooner with increased upfront affordability. We have a long and proud history of helping members of the Defence Community to purchase their first home and this initiative from the Government will help us do it better.” 

What is Lenders Mortgage Insurance (LMI)?

LMI is a requirement for borrowers when their home loan deposit is less than 20% of their property’s purchase price. This is charged at the time of settlement and can be paid up front or capitalised onto the total loan amount (conditions apply).

What is the First Home Loan Deposit Scheme?

The Scheme is a new initiative by the Australian Government to support eligible first home buyers purchase a home sooner.

Generally, customers today need to save at least 20% of the property’s value to secure a home loan without needing to pay LMI. Under the scheme, the NHFIC will provide a Guarantee of up to 15% of the property’s value.

The Scheme will support up to 10,000 loans each financial year and will be accessible to members through Australian Military Bank from 1 February 2020.

Ahead of this date, customers can check their potential eligibility on the NHFIC website. The eligibility criteria complements the property price lookup tool, which is also available on the NHFIC website. This has also been developed to assist first home buyers determine the property price threshold that applies under the Scheme in relation to properties in every suburb around the country.

In support of the Scheme and Australian Military Bank’s commitment to first home buyers, the Bank will not charge eligible customers higher interest rates than equivalent customers outside of the Scheme. Further information about products available to members eligible for the Scheme will be released early in the new year.

Other Home Buying Assistance Grants and Concessions?

Defence Home Ownership Assistance Scheme (DHOAS)

DHOAS assists current and former Australian Defence Force (ADF) members and their families to achieve home ownership. DHOAS is administered by the Department of Veterans' Affairs on behalf of the Department of Defence.

The Scheme is aimed at improving ADF recruitment and retention. The longer you serve in the ADF, the more entitlement you accrue under DHOAS and the longer you can receive assistance.

To be eligible, you must have served within the last two years of applying for DHOAS, completed a qualifying period of service and accrued a service credit.

You will need to take out a DHOAS home loan and meet the Scheme conditions, including occupancy requirements, to receive the monthly subsidy payments. 

For more information, visit: https://www.dhoas.gov.au/

First Home Owner Grant

If you’re starting out, you might qualify for a First Home Owner Grant (FHOG). Rules and conditions vary for each state and territory and can change from time to time. To find out more, visit: http://www.firsthome.gov.au/

Stamp duty concessions

If you’re buying your first house, you may also qualify for stamp duty concessions (depending on the state/territory). 

More information

We know that the home loan process can be daunting. For assistance or any further information about our Home Loans, call us on 1800 752 349, visit your local branch, make an appointment with a mobile banker or, if you’re ready, feel free to apply online.