The deal is contingent on the fulfilment of regulatory approvals and other standard conditions. Credit: wutzkohphoto/Shutterstock.

Australian Unity has agreed to transfer its banking business, Australian Unity Bank, to mutual banking group Bank Australia for an undisclosed sum.

This transition to the Australian customer-owned bank is aimed at enhancing the banking experience for Australian Unity’s customers.

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The deal will encompass all banking customers and their associated loans, credit cards, and deposit accounts.

As of 30 June 2024, Australian Unity Bank had a client base of 25,000, with $1.4bn in loans and credit and $1.6bn in deposits.

Australian Unity Bank will maintain a ‘business-as-usual’ approach, continuing to operate under the regulation of the Australian Prudential Regulation Authority (APRA) until the completion of the transfer.

Deposits will remain protected by the Australian Government’s financial claims scheme.

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Australian Unity group managing director Rohan Mead expects the transfer to have a positive impact on banking customers and the wider mutual banking sector.

Mead noted: “This transfer will provide Australian Unity Bank customers with the benefits of Bank Australia’s larger customer service footprint, greater digital capability and increased scale, providing long-term sustainability.”

The transfer is expected to be completed within the next 12 months and is contingent on the fulfilment of regulatory approvals and other standard conditions.

Bank Australia managing director Damien Walsh said: “Bank Australia welcomes the acquisition of Australian Unity’s banking business as a demonstration of continued commitment to mutuality, customer ownership and values-based banking.

“As a strong, resilient customer-owned bank, Bank Australia is proud to support the ongoing needs of Australian Unity banking customers.”