Bank Australia and Qudos Bank have agreed to continue to explore a proposed merger and seek regulatory approval to merge before asking members to vote in 2025.
The two customer owned banks announced the proposed merger in February 2024 with the Boards of both banks citing the strong values alignment, commitment to customer ownership and opportunity to scale their impact as the basis for exploring the merger.
Bringing Bank Australia and Qudos Bank together would create one of Australia’s largest customer owned banks supporting 300,000 customers with total assets exceeding $17 billion and served by almost 900 employees.
Qudos Bank Chair Jennifer Dalitz said “We’re pleased to be proceeding with the proposed merger of two of Australia’s leading customer owned banks, Bank Australia and Qudos Bank following a successful due diligence phase. We see the proposed merger as an exciting opportunity that would create one of Australia’s largest customer owned banks, and enable greater investment in even better products, services, digital banking technology for our members and creating a positive impact for communities and the environment.”
Bank Australia Chair Steve Ferguson said “The proposed merger between Bank Australia and Qudos Bank would provide an opportunity to accelerate the growth of two financially strong customer owned banks. Qudos Bank shares our strong focus on supporting customers and their communities to thrive, so their vision of sustainable future aligns closely with ours. The growth from a merger would allow us to deliver even greater experiences for our members, and increase the reach of our purpose driven banking to more Australians.’’
During the next phase of due diligence, both banks will focus on identifying the benefits and risks of the proposed merger, along with developing the plans, strategies and structures needed to successfully merge.
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 ahead of the vote.
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 is currently being 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 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 yourmember 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 brandchannels including internet banking, app, and contact centre channels, and keepusing 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 existingterms and conditions. Plus, as a result of the merger there will be savings formembers via a number of reduced fees and charges across the product range. Productsearning 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.
While the Merged Bank’s company name will be Bank Australia Limited, both the Qudos Bank and Bank Australia brands will continue to operate from day one including how members engage with the Qudos Bank brand channels. As a customer-owned bank, in the event of a review of the names used by the Merged Bank in the future members will be engaged for their views.
While our name has evolved over the years, our commitment to serving our members has remained the same. Asa 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, this is a true merger of equals 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 decision to merge is a proactive strategy by the Board of Qudos Bank, and after careful consideration, we believe Bank Australia is the ideal merger partner because of the strong alignment of both banks’ values, culture and purpose. This merger represents a long term, forward-thinking strategy that builds on our shared commitment to providing better value for members now and into the future. By combining our strengths and upholding our values, we will continue to operate as a customer-owned bank.
No, the merged entity will continue to be 100% customer owned.
Qudos Bank members will ceaseto be Qudos Bank members and will automatically become members of BankAustralia and will be issued a new share in Bank Australia with the same rightsas 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.
