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 will be reviewed by the Australian Government banking regulators including the Australian Prudential Regulation Authority (APRA). APRA is responsible for ensuring that customers and the banking industry are protected. Its approval and a yes vote from the member of both banks is required before the merger can proceed.
The merger is a proactive strategy, to ensure we continue to invest and deliver the benefits of customer owned banking that members deserve well into the future. The merged bank will benefit from the shared strengths of the existing partners with increased capability and capacity for product, customer service and technology enhancements. Importantly the merger is a true merger of equals, with Bank Australia sharing similar values, culture, purpose and commitment to customer owned banking.
This means more for you, and more for members including in areas like:
Should the merger proceed accounts and products held by members of each bank will continue on existing terms and conditions. Our contact centre, branches, internet banking and the Qudos Bank App will all continue. It is our goal to deliver greater value for members through the merger via reduced fees and charges across both banks and improvements in the member experience.
More information on the benefits to members via products and services will be outlined in the Member Information Booklet which will be provided following regulatory approval in early to mid-2025.
You'll also continue to enjoy the same customer-owned bank service you've come to know and love.
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).
There will be no immediate change to any of your day-to-day banking, accounts and products held by members will continue on existing terms and conditions. Post-merger you’ll continue to enjoy the same great products and customer-owned bank service you’ve come to know and love, with the opportunity to access new products in the future from the investment that comes from being a member of a larger bank.
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 forced redundancies. Our people are the key to how we deliver for our members, and in building an even better bank we will need everyone on board. There will be opportunities for all current non-executive employees to continue working with the merged bank including redeployment career opportunities where appropriate.
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 be retained and continue to operate on day 1 of the merged bank. Members will be engaged for their views on significant matters such as the brand strategy should there be a review in the future.
No, this is a true merger of equals reflected in the balanced representation from both banks across both the Board and executive level with head offices in both Collingwood (VIC) and Mascot (NSW).
No, the merged entity will continue to be 100% customer owned.
If the merger is approved the Merged Bank remains a customer owned bank. Qudos Bank members will become members of Bank Australia.
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.
