The AWA Board will be recommending to members a merger with Beyond Bank Australia Ltd.
AWA is currently a party to an agreement with Bendigo and Adelaide Bank (Bendigo) in operating the Alliance Bank network. The Alliance Agreement is scheduled to end in February 2025.
We have been advised that as part of Bendigo's strategy to reshape its business for the future, the bank is pursuing a strategy to become simpler, stronger and more efficient, which means the existing Alliance Agreement will not be renewed upon expiry.
AWA have been working closely and collaboratively with Bendigo to identify and consider a different operating model for our members into the future.
The AWA Board have also been completing a deliberate and planned process to evaluate other strategic options that may also be available to us in the ongoing delivery of our member value proposition.
AWA is pleased to advise that this process has now concluded and the AWA Board have unanimously agreed to recommend to members that AWA proceed with a Merger with Beyond Bank Australia Ltd (Beyond) by way of a Scheme of Arrangement.
For the Merger to proceed AWA will need to seek a number of approvals including a member vote in favour of the scheme.
At this point in time members are not required to take any action.
AWA is working towards the regulatory and court approvals required and will advise members of the outcome which we expect will take approximately 3-4 months.
In the Interim, you are invited to review the Questions & Answers below.
What are the upcoming changes to AWA Alliance Bank?
AWA Mutual Ltd is currently party to a 10 year agreement with Bendigo & Adelaide Bank Ltd (BEN) that enables AWA Alliance Bank to operate. This agreement ends in February 2025 and BEN have advised that they will not be looking to extend the agreement in its current form beyond this date.
This means that AWA needs to secure an alternate agreement or model to continue to provide banking services beyond 2025.
AWA’s Board have unanimously agreed to recommend to members that AWA proceed with a merger with Beyond Bank Australia Ltd (Beyond) by way of a Scheme of Arrangement.
For the merger to proceed the following needs to occur:
- ASIC and the Federal Court need to approve the merger by Scheme of Arrangement
- APRA needs to approve the transfer of existing AWA members banking products from BEN to Beyond
- AWA members need to vote in favour of the Scheme of Arrangement
What is the current Alliance Agreement with Bendigo?
Following AWA Member approval, the 10 year agreement commenced in February 2015 and involved AWA transferring its loans and deposits to Bendigo, the removal of AWA’s banking licence and AWA becoming an agent for Bendigo in the sale of products and services.
This agreement has allowed AWA to continue with its member value proposition, expand its business into strategic community partnerships and make a more significant philanthropic contribution to our community.
In the past 8 years, operating as AWA Alliance Bank under this agreement, AWA has grown its banking business by over $140m and contributed over $2m to community organisations.
Why isn’t BEN renewing the Alliance Bank Agreement?
BEN has a strategy to simplify their business and become more efficient, so maintaining a separate Alliance Bank network in addition to the core Bendigo Bank network no longer fits these objectives.
AWA has worked closely with BEN to explore a different operating model for us to deliver services to our members.
AWA’s Board weighed up this option against other options as part of their review process.
What is the Boards process?
The AWA Board review has been extensive with a clear focus on members, people and communities and has valued the importance of being a member owned organisation.
This review explored in detail a number of options and has now concluded with the Board proposing a way forward which will be subject to member and regulatory approval.
Why Beyond Bank?
Beyond are a fellow mutual organisation, and like us, have a long history of providing banking services for regional and rural Australian and their communities.
Beyond have a track record of excellent customer service and award winning banking services, being recognised by Cannstar as having the most satisfied customers of any customer owned bank in 2023 and winning their digital banking award 9 years in a row.
Beyond are also in the top 3 for Forbes world best banks and are the highest rated financial services B.Corp in Australia.
Beyond also has a strong focus on strengthening community via a number of initiatives such as:
- The Beyond Bank Australia Foundation - which focuses on supporting aged care and disability, housing affordability and financial education as well as natural disasters
- Community Development - with partnership initiates similar to that of AWA
- Community Investment Programs - which provide donations and event sponsorship
- A Community Rewards Program – which provides a proportion of interest earned on reward accounts to the selected organisation.
These initiatives would ensure our impact in the Geelong, Portland and Mandurah communities can continue and be strengthened.
What about AWA’s staff and branches?
AWA prides itself on high quality service to our members. It’s our point of difference.
Our people and our branches are a very important part of this service delivery and the Board recognised this as a key element in its considerations. Beyond also recognise this as a point of difference and our values and philosophies around customer service are aligned.
A merger with Beyond would mean our people will receive job security, flexibility and career opportunity with all staffbeing offered roles with Beyond.
Our branch presence would remain in Geelong, Mandurah and Portland with the addition of a new branch in Portlandcity centre as well as access to the national Beyond branch network and contact centre.
This means our people will still be here to support our members into the future.
What will happen to my banking?
How we meet members banking needs into the future was a key element in the Board’s consideration.
A merger with Beyond would mean our members will retain current banking benefits and gain access to enhanced services, including award winning digital products.
In the short term there will be no change to existing banking arrangements.
In the longer term, we can expect there will be some changes for members. You will be kept informed regarding any changes as that becomes clearer.
Our people will be there to support you through any change.
What about the AWA Board?
As a result of the merger via Scheme of Arrangement,
- AWA members will become Beyond members
- AWA Mutual Ltd will become a wholly owned subsidiary of Beyond Bank Australia Ltd
- AWA Mutual Ltd directors will resign from their roles. All AWA directors are fully aware of this outcome and are unanimous in their recommending the merger to AWA members.
What is the process from here?
At this point in time members are not required to take any action.
AWA has now commenced working with Beyond and Bendigo towards obtaining the regulatory and court approvals. We expect this process to take approximately 3 to 4 months. Members will be advised of the outcome of this process once completed.
On the basis that regulator and court approval is granted the Board of AWA with call for a Special General Meeting of AWA members to consider and vote on the scheme.
We will communicate the details and actions required at that time, including details of member information sessions that will be held prior to the Special General Meeting to vote on the merger.
What happens if regulator and court approval is not granted?
Should the regulatory approval not be obtained, the merger by Scheme of Arrangement will not be able to proceed.
AWA would continue to operate under the existing Alliance agreement in the short term and would work with BEN to determine any further arrangements moving forward.
Further Information
You can email AWA directly at with any queries or discuss them with our branch staff personally either in branch or by calling 1300 056 953.
You will be kept informed as we progress but you can also continue to review this page for further updates.
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