More than 1 million Australians are preparing for a major banking shift, as Suncorp Bank customers are moved across to ANZ under the lender’s $4.9 billion acquisition.
The Queensland-based bank, whose history stretches back more than 100 years, has started notifying its 1.2 million customers that their accounts and banking products will be transferred to ANZ by June 2027.
The takeover is expected to strengthen ANZ’s position in the fiercely competitive home loan sector, lifting it to become Australia’s third-largest mortgage lender after Commonwealth Bank and Westpac.
ANZ unveiled its plan to buy Suncorp Bank in 2022, but the proposed acquisition quickly drew close examination from regulators and the federal Treasury over fears it could further weaken competition in Australia’s heavily concentrated banking industry.
In August 2023, the Australian Competition and Consumer Commission moved to block the deal, warning it could entrench the power of the nation’s dominant Big Four banks and limit competition for consumers.
Australia’s Big Four banks — Commonwealth Bank, Westpac, NAB and ANZ — already hold a commanding position in the sector, together controlling about 70 per cent of the national banking market.
However, the ACCC’s ruling was overturned by the Australian Competition Tribunal in February 2024, removing a major barrier to the acquisition.
Treasurer Jim Chalmers then gave the $4.9 billion takeover the final green light in June 2024, declaring the transaction was in the national interest.
More than one million Suncorp Bank customers will be forced to switch to ANZ by June 2027
The takeover proved controversial, with the deal initially blocked in August 2023 before eventually receiving approval from Treasurer Jim Chalmers in June 2024
But it was subject to a number of conditions, including a three-year ban on regional branch closures and a commitment to maintain overall employment levels, ensuring the deal would not result in a net loss of jobs.
Compare the Market economic director David Koch said the transition would represent a significant change for many Australians.
‘For many Australians, this will be one of the biggest banking changes they’ve experienced and could impact everyone from general banking customers to those with mortgages and other types of loans,’ he said.
However, he said the transition also presented an opportunity for customers to take a closer look at their finances.
‘Customers should use the time before the June 2027 transition as an opportunity to review their home loan, savings and everyday banking options.
‘Banking loyalty doesn’t always pay, and Australians could be missing out on better deals if they don’t take the time to shop around.’
ANZ Queensland managing director and Suncorp Bank chief executive Bruce Rush said the transition would be carefully managed, with customers set to gain access to ANZ’s wider network of banking specialists and branches.
‘We’re committed to making the transition straightforward, safe and well supported,’ he said.
Economics expert Mr Koch said the change could be ‘one of the biggest banking changes’ many Australians have experienced
It comes after global banking giant HSBC announced in July that it would exit the Australian retail banking market after almost 40 years, fuelling further concerns about competition and the shrinking number of major players.
Customers online shared their concerns.
‘With Citi already gone, HSBC winding up their retail arm and now this, it looks like we’re just going to end up with the Big 4 and their subsidiaries,’ one person said.
‘Great work by the ACCC. Reduce competitors by one,’ another said.
‘How depressing,’ a third wrote.
Meanwhile, London-based digital banking service Revolut was approved for an Australian banking licence in July, in a move expected to increase competition for the Big Four.
Revolut already has around one million Australian customers using its digital payments app.
The banking licence will allow the company to accept deposits as an Australian bank and expand its savings and lending services.
