In the context of the industrial boom years that followed World War II, many farmers on small holdings were considered inappropriate risks by the established banks, and frequently became dependent on usurious private moneylenders.

In addition to this, the banana industry has always proven to be an extremely unstable one, with seasonal supplies, fluctuations in demand (and consequently price) making it more volatile than other agricultural pursuits. The uncertainty of the industry made banks even less enthusiastic to provide proper financial support. This reluctance was exacerbated by the fact that land used in banana growing was predominantly leasehold and consequently growers lacked the necessary collateral to offer as security for a bank loan.

In contrast to North America, where savings and loan societies were being set up to cut out the usurers in white goods lending, many people in Europe had been working on a solution to this dilemma confronting the agricultural sector. By the late 1960s this type of organisation had undergone over a century of refinement (see Appendix B). This solution eventually became known as the Credit Union Movement in Australia.

Nambucca River identity, Arthur Hanstock had a deep appreciation of the relevance of this Movement to local banana growers' problems, because the earliest Credit Unions had grown up out of the same necessity as that which faced the Banana Industry. He enthused others to support an historic resolution at the 9th April 1969 meeting of the Taylors Arm Branch of the Nambucca District Council of the Banana Growers Federation [BGF], which was held in the Pub With No Beer.

The resolution requested the Nambucca District Council to investigate the possibility of establishing a Credit Union to service BGF Members in the Nambucca District Council area. The resolution was seconded by Mr. Fred Bond and carried.

When the District Council next met in May, they decided to commence making inquiries into the proposal. Initially, this involved contacting Banana Growers in the Tweed District Council area, who had commenced a Credit Union a few years earlier.

Subsequently, the Registrar of Credit Unions was requested to address a meeting of interested growers. The local Members of the BGF then focused on the Credit Union concept as a means of providing some underlying financial stability for their Members. They contacted the New South Wales Credit Union League, and the preliminary feasibility study commenced.

The first registered office of the Credit Union was the Secretary's home at Grays Crossing, Taylors Arm.