The Mac Credit Union Eyes Revenue Growth Beyond Core Banking
The Mac, a credit union with a capital base of $400 million, is embarking on a unique journey to identify potential revenue streams beyond its traditional banking and deposit services. This development, which is quite unusual in the financial industry, was signaled in the company’s annual report that got issued this week to its members.
Appointment of New Chief Strategy Officer
In what seems to be a strategic move towards this new direction, The Mac appointed its former chairman, Lloyd Pollard, as the Chief Strategy Officer in July. The primary mandate for Pollard in his new role is to explore and identify opportunities for revenue growth outside of the company’s core banking provision and deposit services to members.
Current Financial Health
The Mac, which primarily serves its membership in south-western Sydney and its environs, is in no way too small to carry on its operations independently. Like many small credit unions, its deposit book, which stood at $355 million as of June 2025, significantly overshadows its loan book, which is valued at $280 million.
However, the company’s financial year 2025 saw only a modest growth in its net interest income, while its interest expense saw a considerable increase of 37 per cent over the year. Despite managing other costs effectively, the net profit of the credit union fell to $1.43 million in 2025, down from $1.59 million in 2024.
The Mac’s Share Sale in Cuscal
In another significant development, The Mac sold its entire shareholding in Cuscal during the latter’s IPO in November last year. The proceeds from this sale, which amounted to over $1.2 million, practically account for all of the company’s profit for the financial year 2025. This means that The Mac’s underlying profit over the year was minimal.
Looking Forward
With an active membership of 11,000, The Mac is poised to forge ahead in its quest to diversify its revenue streams. The appointment of a Chief Strategy Officer dedicated to this purpose shows the seriousness with which the company is approaching this goal. It will be interesting to watch how The Mac navigates the financial industry in the coming years with its new strategy.
This shift in strategy could potentially serve as a model for other small to medium-sized credit unions looking to expand their revenue streams beyond their core banking business.
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