ME Bank focus on simple good value products

Members Equity Bank has ditched aspects of its long-term business strategy to focus on five simple core products and cheap sales channels. Gone is last year’s branding change to “me bank”. Also out the door is the rhetoric about building a branch network and “taking on the big banks”. Chief executive of Members Equity Bank, Jamie McPhee, said “Our target market, the members of industry super funds, don’t want to move gold bullion through a margin trading account, so we are focussing on developing five basic good value product types and that is it.”

The five product types identified by McPhee are home loans, personal loans, transaction accounts, credit cards and savings products. “So for instance with credit cards we will have three basic good value products – a low rate card, a rewards card and a debit card, and that is it. McPhee likens his business model for Members Equity to Ikea introducing flat packs to furniture retailing. “We are creating a new alternative banking proposition and that is the only way to grow.”

Source: Banking Day