ISCOVER
The Qudos Bank-Bank Australia merger has officially completed, with Qudos Bank assets transferring over to Bank Australia, but both brands remaining in market.
From today (1 July), mutual banks Bank Australia and Qudos Bank have officially merged, bringing together 300,000 customers and forming a banking group with $18 billion in total assets and nearly 900 employees.
The latest in a string of consolidations in the customer-owned banking space, the merger will see both brands remain in market, with customers reportedly expecting to benefit from “reduced fees, an expanded branch network and investment in digital services for customers across the country”.
The merged banking group has said it will leverage its expanded scale and resources to offer a broader range of products and services, reduced fees, and improved digital banking experiences.
It comes after Qudos Bank saw 78.43 per cent of members vote in favour of the merger and 91 per cent of Bank Australia members vote in favour of the scheme in April.
Speaking of the first day of the merger, Jennifer Dalitz, the chair of the board (and former chair of Qudos Bank), said: “We’re excited to launch this new chapter together today. The successful merger of Bank Australia and Qudos Bank is a testament to the shared values and commitment of both institutions to customer-owned banking.
“I’m proud to lead a board that reflects equal representation from both banks, ensuring a balanced and inclusive approach to governance.
“This first year together is about bringing our two strong, customer-owned banks together in the right way. Our focus is on making the transition smooth for our customers, keeping what makes each bank special, and building a stronger, more sustainable bank for the future.”
Damien Walsh, the new CEO and managing director, added: “Today is a significant milestone in our journey. The merger of Bank Australia and Qudos Bank brings together two banks with a shared commitment to customer ownership, and positive social and environmental impact.
“We are excited to offer our members a broader range of products and services, enhanced digital capabilities, and an expanded branch network.
“Our focus remains on delivering exceptional value for our customers and keeping them at the centre of what we do. We’re committed to maintaining the high standards of customer service that both Bank Australia and Qudos Bank have been known for.”
Given the merger, former Qudos Bank CEO Brendan Wright has now departed from the group.
Writing in a post on LinkedIn, Wright commented: “After an incredible journey, 1 July marks the close of my time as CEO of Qudos Bank – and with it, a fulfilling chapter in the customer-owned banking sector.
“It’s been a privilege to work in an industry that continues to evolve rapidly, shaped by regulatory shifts, digital innovation, and structural transformation. The last few years, in particular, have defined a new era for mutuals – purpose-led, customer-first organisations that stand apart through their ownership model and community impact.
“Leading Qudos Bank through this transformation has been an honour. Together, we’ve achieved sustainable growth and laid the foundation for the future, culminating in our successful merger with Bank Australia. This merger creates a modern mutual bank that’s deeply aligned in values, culture and purpose – one that will continue to deliver meaningful benefits to members and new opportunities for our people.
“I want to sincerely thank our exceptional team, loyal members, dedicated partners, and the broader industry community for your trust and support throughout this journey.
“To the talented people, leaders, and mentors I’ve had the privilege to work with across my career – thank you for the learnings, the challenges, and the enduring friendships.
“Onward to the next chapter.”
Mutual merger mania
The Bank Australia-Qudos Bank merger is one of a number of mutual bank mergers in the past year, with two others having been completed in the past year and another three in progress.
These include:
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Teachers Mutual Bank Limited and Australian Mutual Bank Limited
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Summerland Bank and regional NSW lender Regional Australia Bank
It comes following warnings from APRA that mergers could be a possible solution to access advanced technologies and specialised expertise that would “otherwise be prohibitively expensive or too complex to develop internally”.
The prudential regulator has also recently said that some mutuals lack the skills to navigate a modern banking environment and need to continue to reduce strategic risks amid rising competition, the cost of new tech, changing customer behaviours, and the “war for talent”.
Speaking earlier this year, APRA’s executive board member for banking, Therese McCarthy Hockey, said that APRA had observed that the boards of some mutuals “lack the necessary skills to guide their banks in a modern banking environment, in particular, technology skills”.
To combat this, the banking specialist said mutuals needed to focus on upskilling directors and bringing in “fresh talent”, potentially looking “beyond [the] bank’s traditional geographic or industry-based pool”.
Hockey also said that mutual banks may also lose out due to the lengthy tenure of board members.
“Long tenure begins to raise questions about the ongoing ability of directors to exercise impartial judgement, challenge management effectively and be open to new ideas,” she said.
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