Is the Bendigo/Up tie-up an industry benchmark?

Bendigo Adelaide Bank have been winning on the customer acquisition front through its digital bank Up, but its success is also testament to the viability of its business model.

It has been almost two years since Bendigo Adelaide Bank launched its digital bank Up in partnership with technology firm Ferocia.

It’s a strategy that has paid off for the incumbent. Since its first half results, momentum in customer acquisition continues with the bank garnering a 57 percent in growth to more than 165,000 customers for the bank app that Ferocia built.

In March 2020 Up reached a total of 200,000 customers.

Since the tie-up was announced in 2018, a number neobanks have come into the market. The announcement of Virgin Money launching its digital bank further highlights a trend towards traditional banks building “their own greenfield digital banks”.

National Australia Bank of course has a similar proposition in UBank.

The recent announcement by Xinja to pause further inflows into its deposit book amid the challenges of a low rate environment and high costs highlights that banking is not an easy proposition.

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Source: Is the Bendigo/Up tie-up an industry benchmark? | RFi Group