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ISCOVER
Staff Reporter
The Bank of Queensland (BOQ) has significantly enhanced its distribution footprint, with the lender acquiring Virgin Money.
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Under the terms of the acquisition, BOQ will pay approximately $40 million for the exclusive Australian rights to the retail arm of Virgin Group and its brand.
Speaking about the acquisition, BOQ managing director and chief executive Stuart Grimshaw said the bank had worked hard to successfully re-establish the fundamentals of its business over the past 18 months and was now expanding its focus to growth.
“The acquisition of Virgin Money Australia immediately delivers increased geographic and income diversity, and allows us to fast track our existing multi-channel distribution strategy through access to an iconic brand and a business with proven capability in online customer acquisition and product distribution,” he said.
“It will enable us to sell BOQ-manufactured banking products marketed under the Virgin Money Australia brand to customers who would be unlikely to walk into one of our branches, and provides a low risk, high potential entry point into online funds management distribution with an established brand.”
The acquisition highlights BOQ’s desire to grow its distribution footprint, with the lender recently appointing a new head of third party to head its reformed broker distribution network.
