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Corporate Deposit Program

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Our Corporate Deposit Program offers exclusive rates on Term Deposits to other strong local entities.

South West Credit Union Co-Operative Limited is part of The Customer Owned Banking Association (COBA) which represents a sector that:

  • Have 4 million customers across Australia. (there are 20,000 credit union members in the Wannon Electorate)
  • Focuses on its customers because our customers are our owners and they always come first.
  • Is not plagued by financial scandals and breaches of consumer trust.
  • Has almost $100 billion in total assets, mainly home loans.
  • Collectively holds the largest share of the household deposits market outside the four major banks.
  • Generates almost half a billion dollars in profit after tax per year which is reinvested as patient, long-term capital to underpin growth and our commitment to serving our customers.

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  About South West Credit:

In addition to the ADI licence to carry out banking business, South West Credit holds and Australian Financial Services Licence (AFSL) and is regulated by the Australian Securities and Investments Commission (ASIC) under the Corporations Act 2011.

AFSL holders are subject to a range of licensing, conduct and disclosure obligations. South West Credit is also subject to regulatory obligations under a range of laws, including:

  • consumer credit law
  • the Privacy Act 1988
  • the Anti-Money Laundering and Counter-Terrorism Financing Act 2006
  • payments system regulations
  • the Electronic Funds Transfer Code of Conduct
  • The Customer Owned Banking Code of Practice
  Benefits of investing with South West Credit:

Benefits of investing with South West Credit (a non-rated) Authorised Deposit-taking Institutions (ADI):

All banks (both rated and non-rated) in Australia are regulated by the Australian Prudential Regulation Authority (APRA). In addition, non-rated banks are held up to the same regulatory scrutiny as their rated peers , meaning that they are mandated to maintain the same minimum levels of capital and liquidity.

For an investor, non-rated banks offer the following benefits:

  • Simpler risk profile – Non-rated banks have simpler balance sheets, consisting of vanilla loans and deposits. This structure of the balance sheet greatly reduces the chance of default compared to large banks with complex, illiquid products within their portfolio.
  • In addition, being customer centric, these banks will be able to better appraise the credit profile of their borrowers.
  • Superior credit margin on deposits – Non-rated banks can offer superior margins on deposits, as they are able to pass on the savings from rating agency related compliance costs directly to their customers.
  • Conservative management – Non-rated banks are able to raise deposits and serve customers due to their reputation. As such, management of these institutions manage a conservative portfolio which will enable them to maintain their reputation.

A great leveller imposing legislative restraint on the entire banking sector’s activity is the Banking Act 1959, which makes it an indictable offence for a bank to have inadequate assets to meet its deposit liabilities.

  Investment Strategy:

Investors seeking higher term deposit rates should consider investing 20% to 30% of their portfolio in non-rated ADI’s for terms 12 months or less as these non-rated ADI’s are directly governed by APRA’s regulatory regime, exactly the same as the major Australian banks.

  Learn More:

For more information on the Corporate Deposit Program, contact our Chief Financial Officer on (03) 5560 3900, or email finance@swcredit.com.au

  Additional Information: