Bendigo set to retire Delphi as a product brand

George Lekakis

Bendigo and Adelaide Bank is stepping up a program to rationalise its stable of banking brands, after notifying customers of its Delphi Bank subsidiary that they would be migrated to Bendigo branded products and services over the next 12 months.

Delphi, which has unique ties with the Greek and Cypriot communities in Victoria, NSW, South Australia and Queensland, was acquired by Bendigo in 2012 from the Bank of Cyprus.

It currently operates through 13 branches and online and mobile banking channels under the “Delphi” moniker.

While Delphi does not indicate on its website whether it plans to retain the Delphi trading name for the branch network, the brand will be retired for online and mobile banking next year.

The makeover of the Delphi business will also involve moving existing customers to Bendigo-badged products including debit and credit cards, cheque accounts and passbooks.

The business transformation was revealed by Delphi’s general manager Jim Sarris in a post on the subsidiary’s dedicated website.

“In line with our strategy to further align with Bendigo and Adelaide Bank’s vision to be Australia’s bank of choice, we’re making some changes and improvements at Delphi Bank that will allow us to better serve our customers, and their banking needs,” he told customers.

“All Delphi Bank customers will be transitioned from their current Delphi Bank products and services, to Bendigo Bank product and service equivalents.

“This includes online and mobile banking, cards, cheque books, passbooks, and statements – as well as terms and conditions which have been carefully considered to ensure they meet customers’ needs and expectations.”

Banking Day yesterday asked Bendigo to clarify whether the transformation of the Delphi business would involve a rebranding of the branch network but a bank spokesperson could not provide an answer.

“The changes include the transition of all current Delphi Bank products and services to equivalent Bendigo Bank products and services, as well as the migration of Delphi Bank’s technology systems to Bendigo Bank’s core banking platform by the end of financial year 2021/22,” the spokesperson said.

“Customers can continue to access face-to-face banking at their local branches across Victoria, New South Wales, South Australia, and Queensland, and maintain close contact with their current, dedicated Delphi Bank Relationship Manager.”

Bendigo’s attempt to migrate accounts and relationships to the group’s flagship platforms carries the risk of Greek-Australian customers defecting to market rivals such as the Bank of Sydney that also provide products and services tailored for Greek-speakers in Melbourne and Sydney.

There is some duplication in the branch networks of Delphi and Bank of Sydney in these cities, with Melbourne’s Hellenized suburb of Oakleigh likely to emerge as a key battleground for Bendigo to retain customers.

Since she assumed the top job at Bendigo in July 2018, group chief executive Marnie Baker has indicated repeatedly that the bank has been mulling options to streamline brands and cost centres across the organisation.

In an interview with Banking Day in October 2019, Baker indicated that consolidation of the Delphi operation was among the options under consideration.

“We've been reviewing all our business models because brands hang off a business model," she said at the time.

"Some we're looking to divest and Bendigo Financial Planning was a good example of that.

"Other businesses we are looking to consolidate - Delphi is one of those along with every other business we are reviewing."

The customer migration looms as a significant management challenge that will test the deftness of Bendigo’s relationship banking capability.

The looming transformation of Delphi probably plays into the hands of Bank of Sydney, which claims to have been growing its customer base in Melbourne’s large Greek and Cypriot communities over the last two years.