Bendigo bets big amid risk reset
Bendigo and Adelaide Bank is repairing compliance failures and investing $80 million in risk systems, as its digital arm turns profitable and competition intensifies.
Much has been made of the decline of small banks in the face of very big challenges, but Richard Fennell isn’t going anywhere as he tries to steer through the storm.
The Bendigo and Adelaide Bank chief executive has had plenty on his plate since taking over from Marnie Baker 18 months ago, with AUSTRAC investigating the bank over money laundering failures. But if he’s feeling the heat, he’s not showing it, reaffirming his commitment to the role.
“I only know one way to deal with these things, and that’s just rolling my sleeves up and getting on with it. The reality is, we’ve got a big job here. We’ve got some things to fix but we also have some exciting things to drive forward,” he told Capital Brief.
The bank is now spending $80 million over the next three years to address key weaknesses across its risk programs. Fennell’s comments came on the back of a set of mixed results: Bendigo’s half-year income broke the $1 billion mark for the first time and lending margins improved, even as overall volumes stalled.
