More than 90,000 customers from RACQ will soon be moved to another lender, following RACQ's decision to sell its $2.7 billion loan book and $2.5 billion of deposits.
RACQ has announced the sale of its retail lending and deposit business to Bendigo Bank, meaning its 90,000 members will join the banking group.
RACQ Bank’s members will be migrated to Bendigo Bank products at completion and have access to Bendigo Bank’s range of savings and transaction accounts, credit cards, home loans, and personal lending solutions.
Completion of the sale is expected to take place during the second half of 2026, subject to regulatory approval. RACQ Bank will continue trading under its existing brand until the transaction is complete.
Upon completion, Bendigo Bank will enter into a referral arrangement for deposits, savings and home loans with RACQ, which has 1.7 million members.
All bank members are also guaranteed to keep their membership with RACQ for 12 months post completion.
The value of the sale has not been disclosed, but it is said that the final sale price will be based on the assets and liabilities of RACQ’s retail lending and deposit business at the point of completion.
RACQ said the sale allows RACQ to simplify its business operations and pivot its focus toward its core services.
RACQ managing director and group CEO David Carter flagged that the move means access to Bendigo Bank’s broader product suite and service network, including its physical footprint of more than 70 branches across Queensland, mobile lenders, and advanced digital banking services, including the digital bank Up.
He stated: “Like RACQ, Bendigo Bank is one of Australia’s most trusted brands and shares our deep commitment to supporting its communities right across Australia,” Carter said, highlighting the scale, technology and investment capabilities that Bendigo Bank has.
“Bendigo Bank is also an industry leader in providing innovative banking solutions, including the unique Community Bank model and Australia’s first and best digital bank, Up.
“While RACQ Bank has achieved quality growth since its inception in 2016, for us to deliver the best banking experience for our members, significant ongoing investment is needed to meet the growing demand for digital banking, maintain a competitive position and meet regulatory requirements.
“We concluded that it was in the interests of our members to find a better banking solution to meet their needs over the longer term.
“Bendigo Bank has invested strongly in enhancing its products and services while improving its technology to meet the increasing demand for online banking and digital services.”
Bendigo Bank’s CEO and managing director, Richard Fennell, highlighted the alignment of values between the two organisations ahead of welcoming RACQ Bank members from the second half of calendar 2026.
“RACQ Bank's strong member focus complements Bendigo Bank's longstanding purpose to feed into the prosperity of its customers and the community. We look forward to RACQ Bank members joining our bank and enjoying the same personalised service and quality products as our 2.9 million customers.”
The acquisition will increase Bendigo Bank’s exposure to the Queensland residential lending market from 15 per cent to 18 per cent, aligning with the bank's strategic goal for sustainable growth.
Fennell highlighted the strategic fit, stating: “RACQ Bank's strong deposit franchise and member focus complements Bendigo Bank's own deposit strength and longstanding focus on our customers and the community.”
“This acquisition leverages our proven ability to efficiently integrate significant portfolios and will drive improved shareholder returns through cost efficiencies and geographic diversification,” he concluded.
The two banks said they were equally committed to ensuring a smooth transition.
[Related: Bendigo Bank credits new lending platform for resi loan growth]
