Qudos Bank and Bank Australia to retain identities post-merger

Qudos Bank and Bank Australia are set to merge in early 2025, following the signing of a memorandum of understanding earlier this year.

According to Qudos, this merger will result in combined assets of $20 billion, with over 300,000 members and 900 staff.

Speaking to Broker Daily, Qudos Bank CEO Brendan Wright detailed scale as a key reason behind the merger. However, he drove home that both banks will remain customer-owned.

“The reason we’re merging is to keep delivering for our members well into the future. Scale is essential for us to continue delivering the type of service we currently deliver. It’s not about creating a bigger bank, but to invest to remain a better bank for members,” said Wright.

“The merged entity will create efficiencies of scale, the benefits of which will generate greater investment in technology to continue to enhance products and service for members, and access to a larger branch network – but will continue to be 100 per cent customer-owned.

“The banks will come together as one legal entity under Bank Australia Ltd, however both brands will be retained and will still operate from Day 1 post-merger.”

The finalisation of the merger is expected to come early 2025. Regulatory approval is still being chased.

“We are currently seeking regulatory approval for this merger, and we expect to have a decision in early 2025. Following regulatory approval, we will issue a Member Information Booklet to our members so they can make an informed decision and have their say via a member vote in mid-2025 – and if Members vote in support of the merger, Qudos Bank and Bank Australia will come together from 1 July 2025,” Wright said.

Despite scale being a key reasoning for the move, Wright said that there are bigger stakes at play.

“The proposed merger is not just about growth for growth’s sake. Mergers are an increasing reality in the customer-owned banking sector, and this truly is a merger of equals. While we are financially strong and experiencing strong member and lending growth, this merger is a proactive strategy to ensure sustainability well into the future to keep delivering in tangible and differentiating ways for our members. Providing a competitive alternative to the major banks, and one that remains customer-owned,” said Wright.

“With strong growth momentum in both organisations, and given Bank Australia’s historic strength in Victoria combined with Qudos Bank’s strong presence in NSW, new growth opportunities arise for the merged entity to extend the benefits of customer-owned banking to even more Australians.”

The trends of mutual mergers follow themes witnessed over the last year. Some even said mergers are what are keeping smaller lenders alive.

Others went further and said that mutuals could total less than 10 in coming years as mergers trim down the competition.

Qudos has since launched a Member Hub to keep stakeholders informed on the progress of the merger and any updates that come from the organisations.

“Since the signing of the memorandum of understanding with Bank Australia in early 2024, we have continued to update our members on the progress of the merger planning,” said Wright.

“We are now excited to launch the Member Hub with more details on the merger. This is part of our commitment to keep our members informed and involved every step of the way as we progress with the proposed merger between Qudos Bank and Bank Australia.”

According to Wright, the Member Hub will provide “critical information about the benefits that coming together with Bank Australia will deliver for members, such as a wider range of products and services, access to a larger branch network, and increased investment in digital technology to continue to enhance the experience for members.”

“Bringing together Qudos Bank with Bank Australia is not about making a bigger bank; it’s about making an even better bank for members – one that offers the combined strength of two leading customer-owned banks, while staying true to our customer-first principles,” said Wright.

Related: 2 banks announce intention to merge

Jack Campbell is the editor of Broker Daily. After graduating from the University of Wollongong in 2022, Jack began his journalistic career working on Broker Daily’s sister brand, HR Leader. In August 2023 he was made the news editor and worked alongside some talented journalists writing articles and recording podcasts.

To reach Jack, email him at: This email address is being protected from spambots. You need JavaScript enabled to view it.