Illawarra’s home grown bank is growing and expanding in Sydney and the Hunter.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
Large enough to compete against the big four banks IMB Bank also has the advantage of being agile enough to be innovative with technology, products and the way it interacts with customers.
Read more: IMB to become mutual bank
As work advances on a new headquarters which will bring the call centre and other operations back together chief executive Robert Ryan said Illawarra’s mutual bank is growing strongly.
As the Royal Commission into banks wraps up Mr Ryan said he looked forward to the regulatory changes required being done quickly for the good of all banks customers.
His comments came as IMB Bank announced a 15 per cent growth in net profit after tax to $31.6 million and total assets climbing to $5.9 billion.
“We have had a really good year. And we are reinvesting the increase in profit back into the business which is important. We are looking at a digital mortgage, increasing our digital online, opening some more new branches particularly in Sydney and ultimately up in the Hunter.”
Investment in online and digital is being combined with improving IMB’s physical presence in existing and new markets.
“We are investing back into new products as well,” Mr Ryan said.
“We have reverse mortgages and aged care bonds. We are really expanding the business.
“Our base will always be here in the Illawarra but it is good to see a financial institution which is growing ultimately across the state and interstate.”
Mr Ryan said IMB still knows and understands its building society heritage. But being a bank means it is better able tap into future generations.
“It means we can spend our time actually making a difference and making it known we are an alternative to the big four banks. And that we do things a little bit differently to them,” he said.
“We are more about our members needs and concerns. And trying to make sure we are looking after their financial wellbeing.
“Institutions like the IMB have a different way of interacting with their customers who are their members and their owners. And that gives us a great opportunity to grow. We grew 12,000 customers in the last year alone. And we want to double that.”
Growth is being generated online as well as from new branches, mobile banking and business banking.
Mr Ryan emphasised the new digital mortgage service would provide people more convenience.
It is not designed to take away from being able to go into a branch, or having a mobile lender come and visit, or calling someone at the call centre.
“What we do know is a lot of people today research mortgages online”.
Many people don’t have time to go to other channels.
So IMB is providing a service efficiently online that enables them to apply for a loan within 20 minutes and get a conditional approval if they meet the criteria.
“If they don’t get approved we will move them across to one of the other channels so we can dive down a bit further and give them an understanding of what is it that might be the issue.”
Read more: IMB staff recount good times
Mr Ryan said IMB Bank was in the enviable position of having a very loyal home-grown customer base as well as growth outside the region.
“In areas that are very competitive we are growing,” he said.
“I think it goes back to the strength of the model. Our customers are our owners. We get to know them and we ensure what we are doing is fulfilling their financial and banking needs.”
Mr Ryan said IMB Bank employees were another significant factor behind the growth.
“I think our staff are absolutely a part of that 138 year of history which is really about serving and trying to help our customers who are our members. I don’t think you can replace that.”
Mr Ryan said what differentiates the mutual bank from some other organisations, that are more focused on the next sales target and profit, is its employees take the time to understand what customers are saying and how they can help them.
He said it was still important to grow the business and be profitable. But it can do that by looking after its customers and reinvesting in better services and products.
“It is important that we make profits to invest in a sustainable long term business. This business has been around for well over a century. And we intend for it to go on and grow substantially for many more. I think the mutual sector has a great model for that.”
Part of that model is giving back to the community that supports the home grown bank.
Because of its profits the IMB Bank Community Foundation is able to help people who are voluntarily doing dood things in the community.
Read more: IMB Bank hands $8.6 million to community
Its directors have become passionate about the foundation and going out to see all the nominated projects. It gives them a chance to see all parts of the community. And they come back inspired.
“They are always so overwhelmed by the amount of work and effort and span of those projects,” Mr Ryan said.
“What so many people in our community are doing is just so amazing”.
Mr Ryan said it was so important for corporate leaders and volunteers to work together because they can make such a difference by doing that.
“What we are seeing is the IMB is large enough to compete against the big four banks and it is starting to put some quite innovative pieces together. Not just in technology but in product and the way we are interacting with out customer base,” he said.
“I think that is an exciting thing for us. We were one of the first to get into the payments platform (real time payments) while others have struggled. It just shows that you can be of a certain size and be agile and quick. We are excited about that.”
Read more: IMB welcomes special guest at 135th birthday
Mr Ryan said the IMB Bank team was also excited about the new head office under construction.
“All the staff are excited we are investing back here in Wollongong in a building that will bring everything back together. It is probably going to take two years. The new building will also allow us to host some community events. We are going to have a massive function room.”
Read more:
Greg Ellis
Almost four decades in electronic, print and digital media. A writer, presenter, emcee, photographer and videographer with degrees in business management, marketing and human resources and tertiary qualifications in photography.
Almost four decades in electronic, print and digital media. A writer, presenter, emcee, photographer and videographer with degrees in business management, marketing and human resources and tertiary qualifications in photography.
