The agreement with LBW Business & Wealth Advisors is expected to be effective from 1 July 2019.

In addition, Bendigo and Adelaide Bank has also announced that it has entered into a strategic partnership with Bridges Financial Services, a financial advice firm that offers retirement and SMSF services, which will see Bridges take ownership of Bendigo and Adelaide Bank’s advice business assets and also provide ongoing financial planning and advice to the bank’s customers via a referral arrangement.

Bridges Financial Services, a subsidiary of financial services group IOOF, has agreed to acquire Bendigo Financial Planning’s client book and servicing rights for cash consideration of $3 million on completion, plus a further payment payable on the first anniversary of completion, subject to maintaining an agreed ongoing service client retention rate.

As part of this agreement, Bendigo will refer Bridges’ financial planning services via its branch network.

Bendigo and Adelaide Bank’s executive of consumer banking, Richard Fennell, said the changes are driven by the bank’s focus on delivering the highest levels of customer service and outcomes with the agreement to deliver customers increased access to specialised financial planning services.

“At an industry level we have seen the dynamics impacting financial advice businesses change significantly over the last few years. The provision of advice has become a highly specialised capability with the need for significant ongoing investment to meet the increasing regulatory and compliance requirements,” said Mr Fennell.

“In considering our advice business as part of our broader banking services, we recognise we will not be in a position to create the specialised focus required to effectively meet our customers’ needs into the future.

Bridges chief executive Nathan Stanton explained why Bridges is a strong strategic fit with Bendigo and Adelaide Bank.

“At Bridges, we have a proven track record of putting clients at the centre of everything we do and in partnering with like-minded, customer focused organisations to make a difference in our community,” said Mr Stanton.

“Our history of partnering with customer focused banks for more than 30 years, means customers can be confident they will continue to receive quality financial advice from a trusted partner,” he said.