Health insurer and financial services provider Australian Unity and the Big Sky Credit Union are poised to merge.

The two mutual organisations said in a joint statement on Tuesday that their respective boards were in favour of a merger.

Big Sky Credit Union will call a general meeting of members later this year to vote on the proposal.

An Australian Unity member vote is not required.

The proposal to merge is also subject to regulatory approval.

If the proposal is approved, Big Sky members will become members of Australian Unity.

“A merger will create a more competitive mutual organisation that has the resources to expand all member benefits,” Big Sky chief executive Tony Ryan said.

“The combination of Big Sky’s presence in the banking sector and Australian Unity’s diverse interests in financial services, healthcare and retirement living will offer our members significant benefits.”

Australian Unity group managing director Rohan Mead said the two organisations shared similar philosophies, including a desire to develop a meaningful alternative to the major banks.

Big Sky is run on co-operative principles and profits are used to benefit members.

It has more than 30,000 members and $560 million in gross assets.

Australian Unity has 285,000 members nationwide and annual revenue of more than $1 billion.