HERITAGE Building Society will begin operating as Heritage Bank Limited on December 1 after the Australian Prudential Regulation Authority approved its change of name.

Heritage will become Australia's largest member-owned bank.

Heritage chairman Brian Carter said approval from APRA to use the restricted term "bank" was the final step needed for the name change to take place.

"This APRA approval follows the overwhelming endorsement of our members at the Heritage annual general meeting in October, where the name change resolution was supported by 98.6 per cent of the members' vote," he said.

Heritage CEO John Minz said Heritage believed it could start transforming people's perceptions about the term "bank".

"We are helping pioneer a new type of bank in Australia - a member-owned bank, which retains the same values, principles and philosophy that have made us so popular as a building society," Mr Minz said.

"We will be a bank that is not driven by the goal of maximizing profit, but one that exists to provide the best value to our members, who are also our owners.

"For Heritage, this is a change of name only.

"We are not changing our mutual, member-owned structure.

"We are not changing our focus on providing members better interest rates, lower fees and superior service wherever we can.

"We are not listing shares on the stock exchange.

"Heritage Bank will remain proudly People first in everything we do."

Preparations are now underway for the first day of operations as Heritage Bank on Thursday, December 1.