There's a smell of sense amid the sewers of the banking scene in one Australian city, with Community First Credit Union forming up alongside CAPE Credit Union.CAPE, a shrinking, low profit tiddler with origins at the oil refinery on the Kurnell peninsula, brings assets of A$75 million to the table.CFCU has 55,000 members and assets of $1 billion, a scale exceeded by an array of mutual ADIs in the mutual bank era and a credible size with which to paddle along with its sisters credit unions.CAPE is too small to last, the two boards of directors explain in an information statement for members. The rationale for this merger is the same as the dozens that preceded it.In a crisp explanation, the boards stated that: "Over the past decade and more, the retail financial services industry has observed consolidation due to intense competition, a sustained period of record low official interest rates impacting investment returns as well as increasing technology related developments. "This competitive market environment has placed pressure on interest rate margins, which as a small credit union, place pressure on earnings and our ability to deliver value to members."Similarly, new and restrictive regulatory and prudential controls on large exposures and investment lending caps has seen imposts suffered which severely disadvantages existing and future members without increasing access to larger scale operations."The increasing level of compliance to Prudential Standards and other regulatory changes requires a significant amount of Board and management time and the allocation of resources to simply sustain the business. These pressures are expected to continue and have prompted a review of alternative options and a new approach to meeting future challenges."The Board of CAPE seeks to ensure members have access to a credit union that not only meets their current and future financial needs in this highly competitive environment but remains a viable and successful banking and financial services alternative to the larger players in retail banking."The merger will retain the essential credit union characteristics of a focus on members and a structure based on the principles of mutuality."Community First shares history with the oil industry employees who, in the 1960s, staked their communitarian principles on self-help in finance.CFCU was originally the Sydney Water Board Employees Credit Union. In 1974, the Credit Union "commenced its conversion from an industry-bonded credit union to a community credit union by opening its first branch office in Penrith. During this period, the Credit Union adopted a number of name changes including SWB Family Credit Union and SWB Community Credit Union before finally moving to the current Community First Credit Union name.In 2006, CFCU merged with Elcom Credit Union Limited and in 2015 it merged with Manly Warringah Credit Union. It now operates in South West Sydney, Western Sydney, the Central Coast and Northern Beaches regions through a branch network and its online brand, Easy Street Financial Services.