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We are very excited to announce that on February 1st Qudos Bank and Bank Australia announced their intention to explore a merger between two of Australia’s leading purpose driven customer owned banks. In initiating the potential merger, the Boards of both banks identified that there is strong alignment in the culture and values of both organisations, with a deep commitment to customer ownership that puts customers best interests at the core of operations.
MEDIA RELEASE
1 February 2024
Highlights
Bank Australia and Qudos Bank today announced their intention to explore a merger between two of Australia’s leading purpose driven customer owned banks.
In initiating the potential merger, the Boards of both banks have identified strong cultural and values alignment, and an enduring commitment to customer ownership that puts customers’ best interests at the heart of their operations.
Consolidation of similarly aligned purpose driven banks in the customer owned banking sector creates the opportunity for enhanced outcomes for customers. A merger between these two banks would create one of Australia’s largest customer owned banks, and provide a strong platform to accelerate the organic growth both banks have achieved in recent years. A merged entity would benefit customers through increased scale and greater ability to invest in enhanced products, services and digital banking technology.
Bringing Bank Australia and Qudos Bank together would create an entity supporting 300,000 customers with total assets exceeding $17 billion and served by almost 900 employees. Bank Australia’s historic strength in Victoria combined with Qudos Bank’s strong presence in New South Wales opens up new growth opportunities for a merged entity to extend the benefits of customer owned banking to even more Australians.
With aligned commitments to achieve net zero carbon emissions and to create positive impact for customers and their communities, a successful merger will enable the banks to drive even greater positive impact for people and the planet.
Qudos Bank Chair Jennifer Dalitz said “Bank Australia and Qudos Bank make ideal merger partners with their shared focus on values-led, customer first banking. The opportunity to bring two financially strong and growing customer owned banks together to create Australia’s leading purpose driven bank is an exciting one for our employees and customers. Through increased size and scale we’ll build on the already strong foundations of each bank to deliver even greater experiences for our customers, and increase our reach bringing purpose driven banking to more Australians.”
Bank Australia Chair Steve Ferguson said “Both banks have long and proud histories through their credit union origins which lay at the heart of our modern customer owned banks. We both recognise the value of cooperative principles that have helped us create real benefit and positive impact for our customers over many years. We’re excited by the opportunity to jointly build on our commitments to people and the planet, including our 2035 net zero target. A merger will enable Bank Australia and Qudos Bank to create an even stronger and enduring bank that continues to support its customers and the broader community well into the future.”
Key aspects of the proposed merger agreement include
With the Memorandum of Understanding now signed, Bank Australia and Qudos Bank will undertake detailed due diligence to thoroughly assess the benefits of the potential merger for customers.
If both Boards agree to proceed following due diligence, members will be asked to vote on the proposed merger later in 2024 or early 2025, once all the appropriate regulatory reviews and approvals are complete.
Members of both banks will be kept informed of progress and will be provided with further information to support them to make an informed decision if the merger is brought to a vote.
Media enquiries
Bank Australia
corporateaffairs@bankaust.com.au
Qudos Bank
corporateaffairs@qudosbank.com.au
About Bank Australia
Bank Australia exists to inspire and empower customers to use their money to create a world where people and the planet thrive. We are 100% customer owned, a certified B Corp and we aim to be Australia’s most trusted bank. Our commitment to clean money means we focus our lending and investments in areas that do good, not harm, for people and the planet. We support over 190,000 customers and we’re the custodians of more than $11 billion in assets.
About Qudos Bank
Qudos Bank is one of Australia’s largest customer owned banks with over $5b in assets. Being 100% customer owned means our customers and owners are one and the same. Everything we do, the decisions we make, and the way we operate is designed with the customer at the heart of it all. We exist for the benefit of our customers and the community, not for making profit for the benefit of shareholders. We are a proud member of the Customer Owned Banking Association and have made a commitment to follow the Customer Owned Banking Code of Practice. We believe in doing the right thing for customers and our community, helping them realise their potential, and in the power of people coming together to pursue their financial freedom. Our goal is to be the bank our customers value most.
The proposed merger with Bank Australia is a proactive strategic decision by the Board to ensure we can continue to provide the best products and services we can, invest more in secure, modern digital technology that our members expect, and create even greater positive impact for in the communities in which we operate.
This initiative aims to build a better, stronger and more resilient bank for you, our members and owners.
We know bigger isn’t always better, and that’s why many members choose Qudos Bank as we are not a major bank and provide more personalised service, but in banking, scale does matter. So, by merging with Bank Australia, we will remain proudly customer owned and be able to invest more to be an even better bank for members well into the future.
The proposed merger has been reviewed by the Australian Government banking regulators including the Australian Prudential Regulation Authority (APRA), and approved to take the proposed merger to a vote of their members. APRA is responsible for ensuring that customers and the banking industry are protected. Its approval and 75% of votes cast by members being in favour of the proposed merger resolution is required before the merger can proceed.
The benefits to members of a combined Qudos Bank and Bank Australia include:
As a Qudos Bank member your member number, account numbers and BSB will not change on day 1 of the Merger. You will continue to access your accounts through the same Qudos Bank brand channels including internet banking, app, and contact centre channels, and keep using your existing debit, credit cards and digital wallets following the Merger.
There will be more branches available for Qudos Bank members following the merger with Bank Australia. A total of 15 branches will be available for members compared to 5 today, including branches in Sydney, Melbourne, Brisbane, and Canberra CBD. All current branches will be retained and reviewed to best support our continued commitment to customer service. Head office operations will be split between Mascot (NSW) and Collingwood (VIC).
Should the merger proceed, accounts and products held by members of each bank will continue on existing terms and conditions. Plus, as a result of the merger there will be savings for members via a number of reduced fees and charges across the product range. Products earning Qantas Frequent Flyer points will remain.
There will be no changes to interest rates on savings, term deposits, loans and Retirement Savings Accounts as a direct result of the merger. Interest rates on deposit and loan products will stay the same on day 1 of the Merged Bank. Competition laws prevent the two banks from discussing interest rate pricing prior to a successful member vote. Should the proposed merger be approved by members, variable rate products will be harmonised in due course and fixed rate products will be harmonised post-maturity. This will be undertaken by adopting the principle of ‘best of both banks’ and to ensure that members are better off overall.
The Merged Bank will have 10 non-executive directors with equal representation from Qudos Bank and Bank Australia, and one executive director (the Managing Director) to ensure retention of the required skills and experience.
Damien Walsh (Bank Australia) will become Chief Executive Officer and Managing Director, while Brendan Wright (Qudos Bank) will have the opportunity to continue with the merged entity in an executive capacity. The executive team will comprise a balance of Qudos Bank and Bank Australia executives across both the Sydney and Melbourne head offices.
There will be no non-executive job losses or forced redundancies due to the Merger. We need our people more than ever, and everyone has a role to play now and in the Merged Bank. The Merger will create more opportunities for our people to develop their skills and grow their careers.
We're pleased to say our employees including the contact centre and lending teams will remain 100% Australian based. This merger is not about cutting jobs or reducing service to satisfy the financial demands of investors. It is about ensuring that we can keep delivering for members well into the future as a proudly 100% customer owned bank.
Once we receive the outcome of the regulatory review, we will provide members with a Member Information Booklet which will include detailed information about the merger, including both benefits and disadvantages so our members can make an informed decision.
The proposed merger will then require approval by members at both Qudos Bank and Bank Australia, we anticipate putting this to a vote by early to mid 2025.
Subject to the outcome of the member vote the target date for the first day of the merged bank is 1st July 2025.
Both the Qudos Bank and Bank Australia brands will continue to operate in the market from day one including how members engage with Qudos Bank brand channels. Your day-to-day experience with Qudos Bank across online banking, the app, contact centre and branches, will remain the same. As a customer-owned bank, in the event of a potential future review of the brand names used by the Merged Bank, then members will be engaged for their views. As two banks are coming together, the Merged Bank will operate as one legal entity (Bank Australia Limited), but this won’t change the brand names in the market. The Qudos Bank brand will continue to exist as Qudos Bank in the same way it does today under the current legal entity of Qudos Mutual Limited.
While our name has evolved over the years, our commitment to serving our members has remained the same. As a customer-owned bank this commitment is unwavering. This merger isn’t about changing who we are—it’s about strengthening our ability to invest in the technology, products, and services that make banking easier and more rewarding for our members.
No, Qudos Bank and Bank Australia coming together is not a buyout or a takeover. This is a true merger of equals between two customer-owned banks that will remain 100% customer-owned. This is reflected in the balanced representation from both banks across both the Board (the current Chair of Qudos Bank, Jennifer Dalitz will be Chair of the Board of the merged group) and executive level with head offices in both Collingwood (VIC) and Mascot (NSW).
The proposed merger is a proactive, strategic choice by the Board to ensure the history and service ethos of Qudos Bank can be maintained and enhanced for members well into the future. After careful consideration, we believe Bank Australia is the ideal merger partner because of the strong alignment of both banks’ values, culture and purpose. By combining our strengths and upholding our values, we will continue our commitment to customer ownership and operate as a customer-owned bank.
You can find more detailed information about the Merger and the Merger process in the Member Information Booklet available on our website.
No, the merged entity will continue to be 100% customer owned.
Qudos Bank members will cease to be Qudos Bank members and will automatically become members of Bank Australia and will be issued a new share in Bank Australia with the same rights as other members.
The merged entity will maintain the public commitments of Bank Australia.
This webpage will be updated and members informed when new information is made available. Should you wish to speak to a Qudos Bank team member you can do so by calling us on 1300 747 747 and pressing 6, then 3 to speak with one of our customer service representatives about the merger.
Qudos Bank is one of Australia’s largest customer owned banks with over $5b in assets. Being 100% customer owned means our customers and owners are one and the same. Everything we do, the decisions we make, and the way we operate is designed with the customer at the heart of it all. We exist for the benefit of our customers and the community, not for making profit for the benefit of shareholders. We are a proud member of the Customer Owned Banking Association and have made a commitment to follow the Customer Owned Banking Code of Practice. We believe in doing the right thing for customers and our community, helping them realise their potential, and in the power of people coming together to pursue their financial freedom. Our goal is to be the bank our customers value most.
Bank Australia exists to inspire and empower customers to use their money to create a world where people and the planet thrive. We are 100% customer owned, a certified B Corp and we aim to be Australia’s most trusted bank. Our commitment to clean money means we focus our lending and investments in areas that do good, not harm, for people and the planet. We support over 190,000 customers and we’re the custodians of more than $11 billion in assets.
Get the latest on the proposed merger with Bank Australia, and updates on next steps for the merger vote in 2025.
We acknowledge the Traditional Owners of the lands on which we operate and pay our respects to Elders past and present, and to emerging community leaders. We also acknowledge the important role Aboriginal and Torres Strait Islander peoples continue to play within the communities in which Qudos Bank operates and where our team members reside.
