AWA is 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 has also commenced 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.
The Board will continue to focus on outcomes that are in the best interests of the organisation and our members and will provide further communication with our members in the coming months as this process progresses.
Questions & Answers
What are the upcoming changes to AWA Alliance Bank?
AWA Mutual Ltd is 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.
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 7 years, operating as AWA Alliance Bank under this agreement, AWA has grown its banking business by over $140m and contributed over $1.5m 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 is working closely with BEN to explore a different operating model for us to deliver services to our members.
AWA’s Board will weigh up this option against other options as part of their review process.
What is the Boards process?
The Board is assessing all available options, including speaking to other organisations and will take into consideration Members, staff and partners.
Once an option has been selected it will be reviewed by an Independent Expert to ensure the Board has fulfilled its obligations to the company and its members before moving forward.
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 recognises this as a key element in its considerations.
What will happen to my banking?
How we meet members banking needs into the future is also a key element in the Board’s consideration.
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.
We will be there to support you through any change.
When will members know what is happening?
Members will be kept informed regularly as the process progresses and we expect to have reached a determination during 2023.
Members will receive communication from the Board Chair and CEO as well as information via our website as well as the ability to email directly at with any queries.
Communications
