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The Alliance model was co-launched by the bank along with four credit unions – AWA, Berrima District Credit Union, Circle and Service One.
The balance sheet transfer of the Alliance partners took place on Sunday, resulting in more than $540 million in loans and $629 million in deposits.
The Alliance partners also relinquished their ADIs and now operate as agents of the regional lender under its banking licence.
“This new model received overwhelming support from our members as it will enhance our ability to offer greater competitive choice and provide our members with access to a wider range of products and services,” Alliance spokesman Peter Carlin said.
“This not only benefits the people we serve, but also positions us well for growth in the changing financial market.”
Mr Carlin said that by aligning with Bendigo and Adelaide Bank, the Alliance partners can free themselves from prudential capital and funding challenges, as well as minimise their regulatory obligations and costs.
Bendigo and Adelaide Bank managing director Mike Hirst noted that the new banking model is a logical solution for all parties involved.
“We pursued this initiative as it underpins our positioning as a partner of choice, and plays to our strengths,” he said.
“It also enables us to leverage our considerable expertise and investment in the community-bank model, third-party lending and community engagement.”
Members will eventually be able to gain access to new products and technology from Bendigo and Adelaide Bank, with the Alliance partners retaining pricing and loan approval discretions.