Judo Bank review
Judo Bank is a digital bank that services the Australian market. It specializes in lending and financial services for small to medium enterprises (SME). This ‘challenger bank’ was granted its first unrestricted license in April 2019 by the Australian Prudential Regulation Authority. Its deposits are guaranteed up to AUD $250,000 through the Australian government’s Financial Claims Scheme.
How to open an account with Judo.bank
Judo Bank offers Personal Term Deposits. You can apply via the website and will need a current drivers’ license, plus a Medicare card or passport, your nominated bank details, Australian Tax File Number or exemption code, mobile phone number, and email address. You need to be an Australian citizen or permanent resident to open a Judo Bank account.
Judo bank. Review of products
The primary account product offered by Judo Bank at present is a Personal Term Deposit. The bank also provides lending options such as business loans, equipment loans, credit lines, financial leases, and home loans.
Judo offers seven different term lengths for a personal term deposit – ranging from six months to five years. Interest rates – paid at maturity, monthly or annually – range from 1.90 percent p.a. to 2.35 percent p.a. There is the opportunity of a 0.10 percent Loyalty Bonus on term deposits that mature and rollover.
Business loans offer the choice of variable and fixed interest rates with flexible repayment options. Lines of credit – which have a variable interest rate – allow you to withdraw up to the approved limit with no scheduled repayments. Equipment loans can be used to fund a wide range of physical business assets – and financial leases offer tailored repayment frequency to fit with cash flow. Home loans provide repayment options, including principal and interest, or interest-only.
Business loans and lines of credit from Judo Bank are available up to AUD 10 million.
The equipment loan offers the advantage of a balloon payment option, allowing the borrower to save on interest.
- Very competitive rates – make no mistake, the term deposit rates offered by Judo Bank appear to be among the best on the Australian market at the time of writing. If you are primarily rate-focused, Judo Bank can offer the kind of returns you are looking for.
- Flexible – most of the products offered by Judo Bank to SMEs provide a degree of flexibility, which allows growing organizations to tailor arrangements around their needs as much as possible.
- A helping hand – while Judo Bank might not offer the same face to face access as a traditional high street bank, it does emphasize relationships. Every customer will be assigned a relationship manager to look after their account, offering a human touch that some digital banks may have neglected.
- A varied offering – from business and home loans to lines of credit and finance leasing; Judo Bank has put together a varied offering with financial products that can appeal to SMEs with different requirements.
One of the initial criticisms of digital banks in Australia was that their financial products did not have enough variety compared to traditional banks. With its range of lending options, Judo Bank is one of the challenger banks which is bucking this trend and, coupled with its attractive rates, can become a genuine disruptor in the Australian business banking sector.