Neobanks in Australia

The Neobanks (also known as digital banks and challenger banks) are the app-based financial institutions providing products and services through the internet and by phone. They compete with major traditional banks such as Commonwealth, Westpac, Australia & New Zealand Banking Group and National Australia Bank.

Avenue Bank Ltd is digital business bank backed by Melbourne-based Liberty Financial Group. It was granted a restricted banking licence by the financial regulator APRA in September 2021.

86 400 Ltd was one of the first Australian neobanks to receive a full banking licence from APRA (Australian Prudential Regulation Authority). In 2021, National Australia Bank (NAB) acquired 86 400 Ltd and combined it with UBank.

Alex Bank, headquartered 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, the company is a restricted authorised deposit-taking institution.

Douugh Ltd, based in Sydney, is a fintech company and AI-driven mobile banking app provider that utilises the banking licences of its partners, Regional Australia Bank and US-based Choice Bank. Douugh describes itself as a next-gen neobank.

Challenger Bank (formerly MyLifeMyFinance) is an online bank offering simple lending and savings products including retail term deposits (government guaranteed). For the year ended June 30, 2023, it reported net income of $8.8 million and total assets of $243 million.

Judo Bank Pty Ltd is the first Australian neobank for small and medium-sized enterprises (SMEs). With over 540 employees and 18 branch locations, it offers deposit and lending products for businesses and individuals. The company's total revenue increased from $28 million in 2020 and $90 million in 2021 to $298 million in 2023. The net profit before tax was $108 million in 2023.

Up Bank (also known as Up Money) is a digital bank headquartered in Melbourne. It was founded in 2018 and today serves over 500,000 customers. Up is a wholly-owned subsidiary of Bendigo and Adelaide Bank.

Volt Bank Limited was a consumer digital bank based in Sydney. It offered savings accounts through the Volt app. The company was granted a full ADI licence in 2019. In July 2022, Volt permanently closed its deposit taking business and exited the banking industry.

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.

Revolut, launched publicly in Australia in 2020, offers super app, multi-currency accounts, debit cards, fee free ATM withdrawals, credit and personal lending products, stock trading and commodities exchange service. You can also buy, sell, withdraw or transfer cryptocurrency (Bitcoin, Ethereum, Litecoin, Ripple, Stellar, Solana, Dogecoin and other tokens).

Hay Ltd is a Sydney-based fintech established in 2018. It has an Australian Financial Services Licence (AFSL) and is 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.

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.

Infinity is a Queensland-based fintech backed by DayTek Capital. Currently, the company is in the process of building a new bank. It will be the first neobank in the country to offer a full suite of consumer, small-business and premier services.

Islamic Bank Australia Pty Ltd (formerly IBA Group) received its restricted ADI licence from the Australian Prudential Regulation Authority (APRA) in July 2022. The bank is not open for business yet.

Novatti Group, based in Melbourne, is a digital banking and payments fintech. It is still waiting on APRA approving a restricted banking licence.

Tyro Payments Ltd is the largest EFTPOS provider outside of the big four banks. It is a fintech company specialising in payments and banking solutions to Australian business. The company do not categorise itself as a neobank.

Other Fintechs and Money Apps

Airwallex, established in 2015, is a financial technology company headquartered in Melbourne. It focuses on small and medium-sized businesses.

Pelikin is a fintech business offering a multi-currency digital account, Visa prepaid travel money card and travel insurance.

QPay (a trading name of MySmock Pty Ltd) is a student payment app and platform built specifically for university clubs and societies.

ZAAP is a prepaid Mastercard pocket money tool for children. It is backed by Zenith Payments.

Zeller, headquartered in Melbourne, provides payment solutions and financial services for Australia-based businesses.

Spriggy is the pocket money app and prepaid Visa card for kids.

Last updated April 30, 2024