Founded in 1994 as Super Member Home Loans (SMHL) by Australia's industry superannuation funds, SMHL became Members Equity Bank in 1999, and received a banking licence from the Australian Prudential Regulatory Authority (APRA) in July 2001 and was approved by APRA to act as an authorised deposit-taking institution, authorised to accept deposits from the public.

In 1998, SMHL achieved $1 billion in funds under management; and in 1999, IFS entered into an agreement with AXA to establish a 50/50 joint venture company.

[citation needed] IFS continues to provide fee-for-service financial planning advice for members of industry super funds.

[2][3][4][5] In April 2020, ME Bank, owned by 26 industry super funds, altered the redraw facilities on certain legacy home loan products without prior notification to customers.

[1] The bank stated that the adjustment aimed to prevent customers from inadvertently exceeding their original repayment schedules, which could lead to financial hardship.