Bendigo and Adelaide Bank (BEN) today announced it has entered into a strategic partnership with Bridges Financial Services. The agreement will see Bridges take ownership of BEN’s advice business assets and also provide ongoing financial planning and advice to the Bank’s customers via a referral arrangement.
Bendigo and Adelaide Bank’s executive, consumer banking, Richard Fennell, said the changes are driven by the bank’s focus on delivering the highest levels of customer service and outcomes with the agreement to deliver customers increased access to specialised financial planning services.
“At an industry level, we have seen the dynamics impacting financial advice businesses change significantly over the last few years. The provision of advice has become a highly specialised capability with the need for significant ongoing investment to meet the increasing regulatory and compliance requirements,” Mr Fennell said.
Bridges has agreed to acquire Bendigo FP’s client book and servicing rights for cash consideration of $3 million on completion, plus a further payment payable on the first anniversary of completion, subject to maintaining an agreed ongoing service client retention rate.
Bridges CEO, Nathan Stanton, explained why Bridges is a strong strategic fit with Bendigo and Adelaide Bank.
“At Bridges, we have a proven track record of putting clients at the centre of everything we do and in partnering with like-minded, customer-focused organisations to make a difference in our community. Our history of partnering with customer-focused banks for more than 30 years means customers can be confident they will continue to receive quality financial advice from a trusted partner,” he said.
In addition, as part of its overall review of the Bendigo Financial Planning model, the bank will also sell its specialist Geelong West SMSF business to LBW Business & Wealth Advisors, one of Geelong’s largest locally-owned public accounting practices with a strong SMSF presence and financial planning arm.
The agreement with Bridges is expected to be effective from 1 August 2019. The agreement with LBW Business & Wealth Advisors is expected to be effective from 1 July 2019. Neither transaction will have a material impact on the bank’s earnings outlook.
Good. Bendigo Bank are crap at running a FP or Wealth business. Excluding their quite good Advisers, just look who they have managing it. A $3m price tag is telling after how many millions Bendigo have poured into the hole over what more than a decade and a half? Shareholders should be delighted with this announcement.
APRA’s concerns are on the product side, not on the advice side mate.
Anon always with the drama
Anon I will tell you why because they the regulator and supposed rule makers are so focused on screwing the Risk insurance industry nothing else matters!
Bendigo customers will regret this.
So let me get this right, Bridges are owned by IOOF,who are currently under investigation and have been for sometime now even prior to BRC, and they now own and operate more FP business and own more FP clients then all major banks put together????? How is this able to happen??