The Australian financial sector is in a state of rapid evolution, and one structure that’s drawing renewed attention in 2025 is the ‘one bank holding company.’ This model, already common in other global markets, is steadily becoming more relevant down under. But what exactly is a one bank holding company, and why does it matter for everyday Australians, investors, and the future of banking?
A one bank holding company (OBHC) is a corporate entity that owns or controls just a single bank. Unlike a multi-bank holding company, which may control several financial institutions, an OBHC is typically set up to own one bank and, in some cases, related non-banking subsidiaries. This structure is designed to provide flexibility for bank ownership, facilitate capital raising, and streamline compliance, while still falling under the regulatory umbrella of the Australian Prudential Regulation Authority (APRA) and, in some cases, the Australian Securities and Investments Commission (ASIC).
As of 2025, Australia’s regulatory framework for bank holding companies has seen notable updates. In March 2025, APRA rolled out enhanced fit-and-proper requirements for directors and executives of bank holding companies, aiming to bolster governance standards across the sector. The reforms were partly a response to the global trend of holding companies being used for fintech integrations and cross-border expansion.
Key regulatory highlights in 2025:
These regulatory changes are designed to ensure that as bank holding companies become more prevalent, their activities don’t introduce systemic risk or undermine consumer protections.
For customers, the rise of OBHCs can bring both benefits and challenges. On one hand, these structures enable banks to innovate more rapidly—think new digital banking products or partnerships with fintechs—since the holding company can more nimbly acquire or invest in non-traditional businesses. On the other hand, customers must remain vigilant about the stability and transparency of the institutions they bank with, especially as some OBHCs expand into riskier or less familiar financial services.
For investors, OBHCs can offer diversified revenue streams. A holding company might own a single bank as well as a payments business, insurance arm, or wealth management subsidiary. This diversification can cushion earnings and potentially increase shareholder value. However, it also introduces complexity in financial statements and risk profiles, which means due diligence is more important than ever.
Real-world example: In 2025, Bendigo & Adelaide Bank restructured under a one bank holding company model to facilitate a major acquisition of a digital payments startup. The move allowed the group to keep its core banking activities ring-fenced from higher-risk, high-growth ventures, while complying with APRA’s latest capital requirements.
As the Australian financial landscape becomes more competitive, especially with the entry of global digital banks and homegrown fintechs, the OBHC model is likely to grow in popularity. The regulatory reforms of 2025 have provided a clearer path for banks to leverage this structure while maintaining strong oversight and consumer protections.
For Australians, understanding how these companies operate—and what they mean for your deposits, investments, and financial choices—is more important than ever. Whether you’re a customer seeking innovative banking products or an investor looking for diversified financial sector exposure, keep an eye on the moves of one bank holding companies throughout 2025 and beyond.