Australian financial institution Bendigo Bank has agreed to acquire the retail lending and deposit business of RACQ Bank.
The acquisition will see the transfer of more than 90,000 RACQ Bank customers to Bendigo Bank, pending regulatory approval.
RACQ Bank’s business comprised $2.7bn in loans and deposits of $2.5bn as of 30 June 2025.
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The acquisition and transfer of employees is expected to be completed in the second half of 2026. Final consideration will be determined based on the assets and liabilities of the business at the time of completion.
RACQ managing director and Group CEO David Carter stated that the decision to sell was based on Bendigo Bank’s technology, scale and investment capabilities.
Carter said: “Like RACQ, Bendigo Bank is one of Australia’s most trusted brands and shares our deep commitment to supporting its communities right across Australia.
“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.”
Upon closing, RACQ Bank members will transition to Bendigo Bank products.
The members will get access to Bendigo Bank’s savings and transaction accounts, home loans, credit cards and personal lending solutions.
Bendigo Bank will fund the acquisition from its cash reserves.
RACQ Bank will continue to operate under its existing brand until the transaction concludes. Its members will retain their membership for 12 months after completion.
The agreement also includes a referral arrangement for savings, deposits and home loans between RACQ and Bendigo Bank, after completion.
Bendigo Bank CEO and managing director Richard Fennell noted that the acquisition would increase the bank’s share of the Queensland residential lending market from 15% to 18%.
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