Turns out being cashed up isn't just a good look to other investors - it's great for business growth.
Bendigo Bank and Adelaide Bank merged together back in 2007 to form Bendigo and Adelaide Bank. Now, they’re worth of $3.3 billion - with over 1.9 million customers.
Back in 2018, they banded together with a fintech called Ferocia to make a digital bank called Up, to lure customers away from the big four.
After reporting cash profits of $457.2 million over the 12 months to 30 June, Bendigo and Adelaide Bank want to buy out Ferocia - and its 50% stake in Up.
Cash profits are the extra cash a company has after all its expenses are deducted from its revenue.
Generating profit is obviously great for the survival of a business - and for attracting new investors. But it’s more than a good look. It means a company has the financial freedom to make big industry moves.
Bendigo and Adelaide Bank want to grow their digital strategy. And, they want to differentiate as much as possible from traditional banks, while still keeping those customers. Having Up could be the perfect balance.
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