On the Up: Bendigo and Adelaide Bank targets digital growth with fintech acquisition

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In a move designed to expand its digital banking capabilities, Bendigo and Adelaide Bank is set to acquire Melbourne-based fintech Feroicia in a deal worth up to $116 million.

Announced yesterday, the acquisition of Feroicia will also bring digital bank Up fully into the Bendigo and Adelaide Bank fold. 

Launched in 2018 as a partnership between Ferocia and Bendigo, Up has proved to be a hit with Australians looking for an app-based, technology-led banking option, with the neobank amassing over 400,000 customers in under three years.

As part of the announcement Bendigo and Adelaide Bank stated its intention to help ‘grow and advance’ the Up platform, with Up set to continue to operate as a separate brand. 

Up currently offers a digital bank account and savings account through its smartphone app and it has recently launched its own spin on joint accounts.  

It has also indicated (through its publicly available roadmap) that Up home loans are likely to be rolled out at some point in the future. A move into the lending space is perhaps a logical step for the bank, as Up has indicated that more than 30% of its active customers are currently saving up for a home deposit.

According to managing director of Bendigo and Adelaide Bank, Marnie Baker, the acquisition of Feroicia and Up will also help ‘strengthen’ Bendigo and Adelaide Bank’s own digital and online banking operations.

“Up’s customer engagement is unparalleled when compared to global peers, it’s welcomed more than 400,000 customers and $840 million in deposits in less than three years, it’s empowered a new generation of savers and it will secure our market leading position with this emerging, influential demographic.” 

“As we further accelerate Up’s rapid pace of innovation and growth and further expand revenue opportunities through Up, customers of our other brands will benefit from Ferocia’s digital innovation and experience.”

In addition to building a user base in the hundreds of thousands of customers, Up has also received plenty of industry accolades in its short existence. 

In 2020, Up took out the major title of Everyday & Savings Bank of the Year in the Mozo Experts Choice Awards, while it’s bank account, savings account and mobile app have also received the following individual awards:

  • Up Everyday Account: 2019, 2020 and 2021 Mozo Experts Choice Award for Exceptional Everyday Account
  • Up Saver Account: 2019, 2020 and 2021 Mozo Experts Choice Award for Best Regular Saver 
  • Up Banking App: 2020 and 2021 Mozo Experts Choice Award for Excellent Banking App

RELATED: What can we expect as non-major banks join the open banking party from July 1?

For even more news and the latest guides on all things digital banking, check out our dedicated neobank and fintech hubs, or if you’re looking to update your own bank account then check out some of the great options in the table below.

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