Bendigo and Adelaide Bank (ASX:BEN) announced on Wednesday that it has entered into an agreement with Australian asset management group, Betashares (ASX:BBUS), for the sale of its wholly owned subsidiary, Bendigo Superannuation Pty Limited (BSPL). The sale marks Betashares' first foray into the superannuation industry. The completion of the sale is expected in 2024, subject to regulatory approvals and conditions.
BSPL is a trustee and issuer of Bendigo SmartStart Super and Bendigo SmartStart Pension products, with $1.4 billion of retirement funds under administration and more than 19,000 members. The announcement follows a sale process where Betashares was determined as the best fit due to its investment scale, expertise, and commitment to customer service.
Richard Fennell, Chief Customer Officer Consumer Banking at Bendigo and Adelaide Bank, stated that the decision to sell BSPL aligns with the bank's strategic goal of reducing complexity. He emphasized that Betashares was selected due to its strong customer focus and capacity to enhance member outcomes. Fennell further added that the bank believes this transaction will deliver enhanced retirement outcomes for BSPL's members over time.
Alex Vynokur, CEO of Betashares, expressed that entering the superannuation sector aligns with their long-term plan to play a greater role in helping Australians achieve their wealth creation goals. "Superannuation plays a very important role in each Australian's wealth journey, being the sole retirement investment for many," said Vynokur. He also mentioned plans to extend the existing investment offering and add further financial education tools for members.
The bank expects minimal disruption to Fund members as a result of the sale. It is also anticipated that several Bank employees will transfer to Betashares to ensure continuity of service and offerings to Fund members.
Bendigo and Adelaide Bank is one of Australia's largest banks, serving more than 2.4 million customers. Betashares, established in 2009, is a leading Australian asset manager with over $30 billion in fund assets as of August 31, 2023. The Bendigo and Adelaide Bank share price was up 0.73% to $8.925 following the announcement on Wednesday.
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