BANK020 The growing popularity of neobanks in Australia (460 words)

Neobanks are becoming increasingly popular in Australia as people look for different avenues to manage their money. The banking royal commission has also led people to look for solutions outside the big banks for financial products. In this article, we look at how neobanks have become popular and what differences they offer customers.

Neobanks are becoming increasingly popular in Australia as people look for different avenues to manage their money. The banking royal commission has also led people to look for solutions outside the big banks for financial products.

What is a neobank?

Neobanks are digital banks. They don't have any bricks and mortar branches, and you interact with the bank almost entirely on your smartphone through the neobank's app. The presence of neobanks has grown rapidly in Australia since 2018 when the government passed legislation allowing neobanks to obtain a restricted authorised deposit-taking institution (ADI) licence for two years as they build up their business.