The Neobanks or challenger banks are the app-based financial institutions providing products and services through the internet or by phone. They compete with major traditional Australian banks such as Westpac, Commonwealth, ANZ and NAB.

86 400 Ltd, founded by Cuscal Ltd, was one of the first neobanks to receive a full banking licence from APRA (Australian Prudential Regulation Authority). It had $375 million in deposits, $270 million in residential mortgages and over 85,000 customers. In 2021 National Australia Bank has agreed to buy 86 400 and will combine it with UBank.

Judo Bank Pty Ltd is the first Australian neobank for small and medium-sized enterprises (SMEs). With over 250 employees, it offers deposit and lending products for individuals and businesses.

Volt Bank Limited is a retail digital bank headquartered in Sydney. It offers savings accounts through Volt app. The company was granted a full licence to operate as an authorised deposit-taking institution (ADI) in 2019.

Xinja Bank Ltd was an independent app-based challenger bank for Australians. Eric Wilson is chief executive officer (CEO) and founder of Xinja.

Up (also known as Up Money and Up Banking) is a digital bank headquartered in Melbourne. It was founded in 2018 and today serves over 200,000 customers. Up is a wholly-owned subsidiary of Bendigo and Adelaide Bank Ltd.

Alex Pty Ltd (Alex), based in Brisbane, is an online lender and aspiring Australian neobank with one of the lowest rates in the market. It has Canstar 5-star rating for the unsecured personal loans. Alex has applied for authorisation to conduct banking business in Australia.

Hay, established in 2018, is a Sydney-based fintech. It is still waiting to approve its application for a restricted banking licence. The company has already announced its linked Hay Account and prepaid Hay Card.

Updated May 10, 2021