ME Bank tries local banking

Members Equity Bank is working on new deposit products and new branches to attract more deposits from its core markets.

 "There is a vacuum in the mid tier," said Anthony Beck, head of corporate affairs at the newly rebranded 'ME Bank'.

"Smaller banks work at a particular identity and ours is the bank for working families. And if there was ever a need for an alternative, it is now, post GFC.

"The market needs competition and we have worked hard for this chance to communicate to our core markets about the difference we have."

ME Bank's core markets remain members of industry super funds and members of trade unions.

"Our market is working families," said Beck, "so our principal product remains home loans where we are maintaining our market.

"We have an increased focus on deposit products, our online savings account is very successful."

More new branches are also coming. Beck said there will be ten in the next twelve to 18 months to add to the two recently opened in the ACT, where ME enjoys market penetration two to three times anywhere else, and two in Melbourne CBD.

"We are strong in Canberra because of the strong unions, the CPSU and the CFMEU, and the generally good support we have amongst public servants.

"Public servants are typically well informed and willing to support our good deals.

"The physical branch footprint is an important driver of deposits. The branch is a good physical representation of the bank."

ME Bank grew household deposits by 3.1 per cent last month and by 56.6 per cent over the last year according to the latest APRA data. Those numbers put ME amongst the better performing banks in attracting retail deposit growth, off a low base compared to the majors.

ME Bank is yet to break through a billion dollars in household deposits, and will reach that milestone soon.