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.

The means that AWA needed to secure an alternative agreement or model to continue to provide banking services beyond 2025.

After a thorough review, the AWA Board recommended to members that AWA proceed with a merger with Beyond Bank by way of a Scheme of Arrangement. 

To allow the merger to proceed the following needed to occur:

• ASIC and the Federal Court were required to approve the merger by Scheme of Arrangement
• APRA needed to approve the transfer of the existing AWA member banking products form BEN to Beyond Bank
• AWA members had to vote in favour on the Scheme of Arrangement

Theses steps have now all been completed and the merger of AWA and Beyond Bank will be occurring on 1 March 2024.

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.

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 ward winning digital products once AWA has fully migrated to Beyond’s systems.

In the short term there will be little 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?

Now that all member and regulatory approvals have been received, the merger via Scheme of Arrangement will proceed on the agreed date of 1 March 2024. 

On this day, AWA will become a wholly owned subsidiary of Beyond Bank and all members of AWA (identified on the agreed Scheme Record date of 23 February 2024 at 7.00pm AEST) will become member and shareholders of Beyond Bank. As a part of this transaction, the ownership of all AWA Alliance Bank branded deposits and loans will transfer from Bendigo and Adelaide Bank Ltd to Beyond Bank Australia Ltd.

The final phase of the merger (being the integration of the AWA system into Beyond Bank’s) will commence and is estimated to take approximately 6-8 months. During this time, we expect current AWA locations will remain AWA Alliance Bank branded, and members will continue to interact with us for their banking needs as they do now.