The Fintech revolution Australia didn’t really notice
When one thinks of Australia and fintech, the automatic reaction is to think Buy-Now-Pay-Later. This is understandable given our local success in kick-starting the global trend.
However, there is significant financial innovation afoot that Australians may have overlooked. Neobanks are taking the world by storm with some local players making moves too.
Neobanks are simply defined as being new app-based banks without branch offices and are generally used entirely via your phone. Since 2018 Australian legislation has allowed for Neobanks, or digital banks to open in Australia, however it’s the European players best known.
Globally, some of the best known Neobanks include the British Monzo and Revolut as well as German N26. However there are now 11 Neobanks operating in Australia including Judo. It’s been reported they are looking to list on the Australian Stock Exchange following a $650 million initial public offering (IPO), valuing the company at approximately $2.3 billion.
An Australian Financial Review article in May showed a table of the number of Fintech in each major category in Australia. Of the categories with a presence in Australia; Neobanks had the least. This just goes to show NeoBanks are clearly serious business, but a banking option yet to truly break through the zeitgeist in Australia.