Australian Neobanks

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 is one of the first Australian neobanks to receive a full banking licence from APRA (Australian Prudential Regulation Authority). In 2021, National Australia Bank (NAB) has agreed to buy 86 400 Ltd and will combine it with UBank.

Alex Pty Ltd (Alex), based in Brisbane, is an online lender and Australian neobank with one of the lowest rates in the market. It has Canstar 5-star rating for the unsecured personal loans. Currently, it is a restricted authorised deposit-taking institution.

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.

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 400,000 customers. Up is a wholly-owned subsidiary of Bendigo and Adelaide Bank.

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. In January 2021, the company completed exit from banking business, and closed its transaction and savings accounts.

IN1Bank Ltd is a new digital banking startup located in Sydney, NSW. It is the third Australian bank to be granted a restricted ADI license.

Hay Ltd, 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 offered Hay Visa Card, a prepaid card linked to Hay app and Hay account, not a bank account.

Updated September 1, 2021