Jacqui Banks Jacqui Banks
“SME lender Judo Bank just became a unicorn with another massive $230 million raise”. “Judo Bank revels in unicorn status as investors tip in another $230m”. “Judo inks new $350m facility with Citi to lift lending to SMEs”. “Judo gets licence in shot across banks’ bows”. April 2019 The Australian Prudential Regulation Authority announced it had granted Judo Bank Pty Ltd a licence to operate as an authorised deposit-taking institution without restriction following its application in May 2018. As part of the license grant the business changed its name from Judo Capital to Judo Bank.
Judo is following the SME challenger bank model developed by Aldermore, Shawbrook Bank and OakNorth Bank in the UK. In December 2020, Judo Bank was ranked among the top 10 independent neo-banks across the globe by WhiteSight’s Top 20 neo-banks of 2020 research, which based the ranking of the neo-banks on valuation. Judo Bank was the only Australian bank to rank among the top 10 neo-banks.
In February 2020, Judo Bank was announced the winner of the Mozo Experts choice awards 2020 Term Deposits. Judo Bank is an Australian bank focused on small and medium-sized enterprise lending but also offers a range of personal term deposit products to consumers. July 2020, Judo Bank has won the Bank of the Year – Term Deposits Award. Canstar Research noted Judo Bank was the market leader among banks when it came to interest rates, and beat the market average on features, with a market-leading performance on options offered at term deposit maturity. “Ashurst advises Australian challenger bank on A$100m capital raising”. Australasian Lawyer.
Small Business & Family Enterprise Ombudsman Kate Carnell says Judo Bank’s launch is well-timed with the lending shortfall continuing to grow. “There is no competition”, Carnell said. “The big four banks have 80 percent plus of the SME lending market and they mostly don’t lend except if it is secured against property and that means access to capital is very difficult for many SMEs.” Having joined the “Unicorn Club” in May 2020 with a valuation of $1.6 billion, Judo Bank is the first of the Aussie challenger banks to reach the coveted position. “Australian startups and young tech companies secured over $1 billion in funding in the last quarter of “. In September 2020, KPMG’s Pulse of Fintech report shows that venture capital investment in Australia’s fintech sector has charged ahead, up 153% year on year, and that one of the two largest fintech transactions regarded Judo Bank with $203.4m.