7 banking buzzwords to look out for in 2023
The banking sector is a constantly evolving area with an ever-changing landscape of buzzwords and jargon. Technology and climate change continue to disrupt the traditional way of doing things and it can make you feel like you’re reading another language.
So, if you want to keep ahead of the curve for the coming year, then check out these banking buzzwords to know for 2023!
1. Green Finance
Concerns over climate change have led many to think about where their money is going. In response to this, some banks have begun adopting an ESG investments (environment, social, and governance) policy. A combination of cheap and efficient green tech coupled with the growing concerns for climate change has caused a shift in the banking and investment world.
Consumer demand for green financing has gradually moved the needle on the importance that companies and financial institutions place on green spending. With the increased frequency of the disastrous effects of climate change, you can expect the demand for green financing to grow.
2. Fintech
Financial technology, or fintech, is quite simply an umbrella term that encompasses everything from digital banking, investing apps, crypto, and even artificial intelligence. Fintech is a rapidly growing area of finance and, especially post-covid, the integration between the internet and the economy has grown substantially.
The rapid growth of fintech is not just global but even more concentrated locally. Australia is very much at the forefront of the fintech revolution with large companies such as Afterpay originating in Melbourne. In fact, FinTech Australia reports over 800 fintech companies across all state and territory capitals in Australia.
Fintech is an industry that is rapidly growing. With it, there comes a plethora of new companies and apps that add to the newest developments in banking.
3. Open banking & consumer data right
Open banking, simply put, allows consumers to freely share their banking data with third parties. The change to open banking has allowed Australian consumers to better save (such as connecting to budgeting apps) and better personalise loans based on their credit rating and spending habits.
Furthermore, with the launch of the Consumer Data Right in 2021, the ease of sharing banking data has only gotten easier and—according to the CDR homepage—it is expected to grow over time as more providers become accredited. In turn, this should allow for the development of a competitive space for fintech companies to participate in the banking sector.
Now, everyday Australians have control over their banking data, opening the way to the growing fintech industry to innovate in new and exciting ways.
4. Budgeting & savings apps
Budgeting can be a hassle when you don’t have it close by. With open banking allowing for the free sharing of consumer data, budgeting and saving apps have exploded onto the scene, allowing everyday Australians to keep track of their spending and support the development of better money habits. Budgeting and savings apps work by connecting to your bank account and analysing your transactions. In this way, you have an easy automatic way of categorising your spending habits and knowing where you can start cutting.
Just as an example, I found that I had been ordering too many Uber eats, letting me know I needed to cut back. Now how’s that for high-tech budgeting?
5. Digital Home Loans
More and more it seems everything is going online, and digital home loans are no exception. These online mortgages have proven popular, with even the bigger banks quickly jumping in to set up their own digital home loan offers.
With fast approval times and ease of access to the internet, it's no wonder more home buyers are adopting this option.
6. Cashback home loan
Speaking of home loans, consumers are looking for better alternatives due to the rise in interest rates. One way in which banks are enticing borrowers to refinance their home loans is through cashback home loans. Basically, cashback home loans give you a chunk of cash (say, for instance, $4000) when you refinance your loan to the bank that offers said loan.
Whilst banks still make a profit through interest, refinancing your loan to a better deal can still save you thousands … and it’s not too bad having a spare chunk change for when times get tough!
7. Offset accounts for home loans
Having a lump sum of savings that is earning you interest is fantastic and works well as a safety net. Well, what if your savings could help you pay off your loan faster? Offset accounts work like any other transactional account allowing for withdrawals and transactions—the difference is, when you keep your cash in the account for a certain length of time, it works to reduce the interest on your loan.
Whilst an offset account is useful, having a separate high-interest savings account can also help to keep you safe in case of emergencies whilst growing your cash.
Check out our comparison of Australia’s leading high-interest savings accounts here.
Savings account comparisons on Mozo - last updated 2 May 2024
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Mozo experts choice awards won:
- Kick Start Savings - 2024
High Interest Savings Account
5.75% p.a. (for $0 to $250,001)
4.40% p.a.(for $0 to $250,001)
Yes up to $250,000
Bonus rate for the first 4 months from account opening
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
CompareCompareHigh Interest Savings Account
Reward yourself with a higher rate for your good savings habits with the Rabobank High Interest Savings Account . Receive the maximum rate when you grow your balance by at least $200 each month. No Account keeping fees. No minimum balance.
- Maximum rate
- 5.75% p.a. (for $0 to $250,001)
- standard interest rate
- 4.40% p.a.(for $0 to $250,001)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus rate for the first 4 months from account opening, reverting to standard variable rate. Rate shown is for Personal customers and is subject to change. Different rates apply to Business/SMSF customers.
- Access
- Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must link to a transaction account
Read our Mozo Review to learn more about the Rabobank High Interest Savings Account
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Savings Account
5.35% p.a. (for $0 to $250,000)
4.75% p.a.(for $0 to $1,000,000)
Yes up to $250,000
Bonus variable rate is available for the first four months.
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
CompareCompareSavings Account
Competitive introductory variable rate for first 4 months (on deposits up to $250,000). No account keeping fees to pay. Multiple 2023 Mozo Experts Choice Award winner.
- Maximum rate
- 5.35% p.a. (for $0 to $250,000)
- standard interest rate
- 4.75% p.a.(for $0 to $1,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Bonus variable rate is available for the first four months.
- Access
- BPay, Branch access, Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Must have a Macquarie Transaction Account to link with.
Read our Mozo Review to learn more about the Macquarie Savings Account
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Reward Saver Account
5.25% p.a. (for $0 to $1,000,000)
0% p.a.(for $0 and over)
Yes up to $250,000
Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.
Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.
CompareCompareReward Saver Account
Introductory bonus rate for balances up to $1,000,000 for the first 4 months. Minimum deposit of $50 and no withdrawals. Start your account online in under 10 minutes and earn interest on balances up to $1,000,000 (T&Cs apply). No monthly account fees, helping you save smarter and faster.
- Maximum rate
- 5.25% p.a. (for $0 to $1,000,000)
- standard interest rate
- 0% p.a.(for $0 and over)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Intro bonus rate of 5.25% for balances up to $1,000,000 for the first 4 months, reverting to 3.25%. Minimum deposit of $50 and no withdrawals.
- Access
- ATM, EFTPOS, Visa Debit, Cheque book, BPay, Branch access, Phone banking, Internet banking, Bank@Post
- Minimum balance
- $0.00
- Other restrictions
- -
Read our Mozo Review to learn more about the IMB Bank Reward Saver Account
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Savings+Bonus
5.00% p.a. (for $0 to $250,000)
2.00% p.a.(for $0 to $250,000)
Yes up to $250,000
Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.
Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.
CompareCompareSavings+Bonus
Earn a generous interest rate on your at-call savings (T&Cs apply). Interest is calculated daily and paid to you monthly. A $5 monthly membership fee will not apply if your total account balances with First Option Bank exceed $1,000 or you have a credit card or loan with the bank.
- Maximum rate
- 5.00% p.a. (for $0 to $250,000)
- standard interest rate
- 2.00% p.a.(for $0 to $250,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $5.00
- Maximum rate conditions
- Minimum $100 monthly deposit and no withdrawals to earn bonus interest each month.
- Access
- -
- Minimum balance
- $1.00
- Other restrictions
- Must become a First Option Bank member to open an account.
Read our Mozo Review to learn more about the First Option Bank Savings+Bonus
-
Mozo experts choice awards won:
- High Interest Savings - 2024
AMP Saver Account
5.40% p.a. (for $0 to $250,000)
1.20% p.a.(for $0 to $5,000,000)
Yes up to $250,000
Enjoy a bonus rate when you deposit at least $1000 per month with the AMP Saver Account.
No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.
CompareCompareAMP Saver Account
No account fees. Unlimited transactions when linked to an AMP Bank transaction account. Easy online access to your money. Option to link your savings account to an everyday transaction account. 2024 Mozo Experts Choice Award winner.
- Maximum rate
- 5.40% p.a. (for $0 to $250,000)
- standard interest rate
- 1.20% p.a.(for $0 to $5,000,000)
- Govt Deposit Guarantee
- Yes up to $250,000
- account fee per month
- $0.00
- Maximum rate conditions
- Ongoing total variable bonus rate of up to 5.40% per annum applies if customers deposit $1,000 in the previous month. Available only on balances up to $250,000.
- Access
- Phone banking, Internet banking
- Minimum balance
- $0.00
- Other restrictions
- Ongoing total variable bonus rate up to 5.40% p.a. is earned on the balance the month after you deposit $1,000 and is paid the following month, on balances up to $250k. Max balance per customer name is $5 million.
Read our Mozo Review to learn more about the AMP Bank AMP Saver Account
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