Australian challenger bank Judo Capital gets $140m funding
The Australian banking scene is staying lively as challenger Judo Capital has got itself a handy $140 million in funding.
As reported in March, Melbourne-based Judo officially unveiled its plans as it targets the nation’s SME sector.
Judo said it started the process of applying for a banking licence from the Australian Prudential Regulation Authority (APRA) – the culmination of a “strategic build-up of the company” over the past three years.
It says it aims to become Australia’s first true “challenger bank” for SMEs, based on the models delivered by UK challengers such as Aldermore, Shawbrook, and OakNorth.
In March it got $100 million funding and the bank began lending in April.
According to the Australian Financial Review investors in its latest funding round include Ironbridge Capital, Canadian pension fund manager OPTrust and Myer Family Investments.
Other investors are Abu Dhabi Capital Group, Zhong Yi Investment and Credit Suisse Asset Management, Cambooya, Inception Asset Management, Esson and CH Warman Group.
Judo plans to open an office in Sydney in September and intends to expand its team of 50 as it rolls out nationally in the coming months.
The big heat
The challenger scene Down Under is heating up nicely.
In June, 86 400 (pronounced eighty-six, four-hundred), led by former ANZ Japan CEO, Robert Bell, and ex-Cuscal Payments CIO Brian Parker, fired up.
Neobank Xinja has plans for a mobile-only digital bank. Back in March it unveiled its prepaid travel and spending card and app.
In May, Sydney-based Volt Bank was given Australia’s first new restricted banking licence and is now working towards becoming a fully licensed bank.
There is also UBank. However, this was launched in 2008 and was developed and is supported by National Australia Bank (NAB). It operates under NAB’s banking licence, and offers home loans, online savings accounts, and term deposit accounts.