Australian Bendigo Bank Acquires RACQ Bank’s Retail Lending and Deposit Business
Bendigo Bank, a renowned Australian financial institution, has entered into an agreement to acquire the retail lending and deposit business of RACQ Bank. This acquisition, subject to regulatory approval, will result in the transfer of over 90,000 RACQ Bank customers to Bendigo Bank.
The Business Composition of RACQ Bank
As of June 30, 2025, RACQ Bank’s business comprised $2.7 billion in loans and deposits of $2.5 billion. The acquisition and subsequent transfer of employees are expected to be completed in the second half of 2026. The final consideration will be determined based on the assets and liabilities of the business at the time of completion.
Rationale Behind the Acquisition
RACQ managing director and Group CEO David Carter revealed that the decision to sell was driven by Bendigo Bank’s technology, scale, and investment capabilities. He remarked, “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 further stated, “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.”
Benefits for RACQ Bank Members
Upon the completion of the acquisition, RACQ Bank members will transition to Bendigo Bank products. The members will gain access to Bendigo Bank’s savings and transaction accounts, home loans, credit cards, and personal lending solutions. The acquisition will be funded from Bendigo Bank’s cash reserves.
Continuation of RACQ Bank Brand
RACQ Bank is set to continue operation under its existing brand until the conclusion of the transaction. Its members will retain their membership for 12 months post completion. The agreement also includes a referral arrangement for savings, deposits, and home loans between RACQ and Bendigo Bank after completion.
Acquisition Impact on Bendigo Bank
Richard Fennell, Bendigo Bank CEO and managing director, noted that the acquisition would increase the bank’s share of the Queensland residential lending market from 15% to 18%.
Source: Here
