16/09/2026
Solvi Lending Insights | September 2026
The current lending landscape is going through a period of change and consolidation, with several mutual banks merging and other banks being acquired by larger institutions.
You may have noticed some familiar names in the headlines recently — Suncorp Bank becoming part of ANZ, HSBC announcing its exit from Australian retail banking, and several customer-owned banks joining forces.
So, why is this happening?
Simply put… it's about joining forces.
Running a bank comes with significant costs. Technology, cybersecurity, compliance and regulation all require ongoing investment.
By joining forces, lenders can spread these costs across a larger customer base and, importantly, have more resources to invest in their technology, products, services and security.
We're seeing a number of examples of this happening across the Australian lending landscape.
* People First Bank *
One of the earlier examples was the merger of Heritage Bank and People's Choice Credit Union, which officially took place in March 2023.
The merger created one of Australia's largest customer-owned banks, bringing together more than 720,000 members and more than $23 billion in assets at the time.
The organisation has since transitioned to the People First Bank brand, with the new brand introduced following the merger. The goal was to create a stronger national mutual and a genuine alternative to the larger listed banks.
* ANZ and Suncorp Bank *
In July 2024, ANZ completed its acquisition of Suncorp Bank.
This is an acquisition rather than a merger, with Suncorp Group choosing to focus on its insurance business while ANZ acquired the banking business.
We're now seeing the next stage of that process, with Suncorp Bank customers beginning their transition to ANZ.
From September 2026, Suncorp Bank customers are being contacted about the move, with customers, brokers and aggregators expected to transition to ANZ's banking products, services and digital platforms by June 2027.
For customers, the transition is expected to provide access to ANZ's broader banking network, technology and specialist services.
* Beyond Bank and Family First Bank *
On 1 March 2026, Beyond Bank and Family First Bank officially came together.
Family First had a strong presence across the Blue Mountains, Lithgow and Central Tablelands, while Beyond Bank has a broader presence across South Australia, the ACT, Victoria and parts of NSW.
The merger allows the combined organisation to extend its reach while giving Family First members access to a broader range of products, services and digital capabilities.
* Teachers Mutual Bank and Australian Mutual Bank *
On 1 May 2026, Teachers Mutual Bank and Australian Mutual Bank came together, with Australian Mutual Bank becoming part of Teachers Mutual Bank Limited alongside its existing brands — Teachers Mutual Bank, Health Professionals Bank, Firefighters Mutual Bank and UniBank.
The combined organisation now has around 280,000 members and more than $14 billion in assets.
The merger was aimed at creating a stronger and more resilient customer-owned bank, with greater capacity to invest in products, digital banking and fraud and scam prevention.
* HSBC is taking a different path *
HSBC Australia has announced that it is closing its retail banking business in Australia.
Rather than merging with another bank, HSBC has entered into an agreement to sell its Australian home and personal loan portfolio to Blackstone, subject to regulatory approval.
Pepper Money is expected to manage and service those loans from the first half of 2027, while the remainder of HSBC Australia's retail banking business will be wound down over the following 18 months.
* And there's more happening in the mutual banking space *
P&N Group recently explored a potential merger with Great Southern Bank, but those discussions ended in January 2026.
P&N has since announced that it is exploring a potential merger with Bank Australia.
If it proceeds, the proposed merger would create a customer-owned bank with more than 530,000 customers and more than $30 billion in assets, with a much broader presence across Australia.
The merger is currently subject to due diligence, regulatory approval and member approval, with a member vote expected in 2027 if the proposal progresses.
So, what does all of this mean?
At first glance, it might look like we're ending up with fewer lenders and fewer choices.
But that's not necessarily the case.
For many of these mergers, the goal is to create larger, stronger organisations that can offer more products, broader geographic coverage and greater investment in technology and services.
We're also seeing some interesting changes to the traditional idea of a “regional” or “local” bank. Lenders that may have historically had a strong presence in particular states or regions are now joining forces and expanding their reach across Australia.
At the same time, some of the larger international banks are stepping back from Australian retail banking and focusing their attention on other areas of their business.
For borrowers, this means the lending landscape is continuing to evolve. The lender you have today may look quite different in a few years — whether that's through a change in ownership, a merger, new products or changes to how they operate.
It will be interesting to watch how these changes shape the Australian lending market over the coming years, particularly as smaller customer-owned lenders look to compete with the major banks while continuing to grow their presence across the country.
Sources: changes-to-hsbc-australia-faqs.pdf | A National Mutual for the People: People First Bank | Move Hub | Suncorp Bank | Merger update: Family First Bank members approve merger. | Beyond Bank | Australian Mutual Bank and Teachers Mutual Bank merger updates | Australian Mutual Bank
