Judo Capital is now Judo Bank, after it was today awarded its full banking licence from APRA.
The banking watchdog said it has granted Judo Bank a licence to operate as an authorised deposit-taking institution (ADI) without restrictions under the Banking Act 1959.
Judo Bank is a specialist lender focused on servicing Australia’s small to medium enterprises that have an annual turnover of up to $20 million.
Launched in March 2018, the fintech is run by former NAB bankers, David Hornery and Joseph Healy. In August 2018 the company raised $140 million and last year secured a US$350 million credit line from Credit Suisse.
The bank says its created a modern and highly secure technology platform, leveraging the full capabilities of the cloud, that’s ready for the incoming open banking legislation and the emergence of machine learning.
Judo is the second challenger bank to be awarded a banking licence this year, after Volt Bank collected its banking licence in January. Business bank Tyro was granted its ADI licence in 2015.
Two more challenger banks, Xinja and 86 400, are in the process of securing their banking licences.
Robert Bell, CEO of 86 400, congratulated Judo on reaching the milestone.
“More banks means better choice and that’s great news for Australians, who have long-deserved better products and services than those offered by the Big Four banks,” Bell said.
“86 400’s full licence application is progressing well and we look forward to making an announcement of our own in the not-too-distant future.”