Indue will promote an insider to chief executive, replacing longstanding CEO Manuel Garcia who is choosing to leave after 13 years. Derek Weatherley, who started as chief financial officer 13 years ago and now manages banking products and strategy for Indue, will replace Garcia after a transition period still to be defined. Garcia told Banking Day yesterday he planned to take a break from the workforce and consider his employment options. The shift in CEO takes place at a sensitive time, with the board in the midst of a strategic refresh for the mutual banking entity and consideration of its capital options. "A strategic review is a bit of a dramatic term," Dawson Petie, chair of Indue's board said. "A board should always be reassessing their strategic direction on a regular basis," he said, playing down talk that one option might extend to a trade sale, as reported earlier this year. Capital management is one theme of the refresh, with Indue having elected to skip payment of an interim dividend to its mutual bank and credit union owners. In the short term this may take the form of selling tier two capital, including subordinated debt, to current and outside investors. "Every organisation has a need for capital," Weatherley, the incoming CEO, said. "It's certainly manageable. We don't have any tier two issued at the moment, so there's a fair bit of headroom, enough to sustain the business over the next two to three years. "But for the foreseeable future the business will be able to self-fund." Like its near rivals Cuscal and Australian Settlements Limited, Indue is closely involved in fostering the transition of its mutual ADI clients to the New Payments Platform next year.