What a difference a century makes. Back in the actual roaring 20s, scraping together your last pennies wasn’t just a metaphor to show how broke you were, because Australia literally used pounds, shillings and pence.
Rather than tapping a plastic card in a matter of seconds, making a purchase involved large folded up pieces of paper, stamped and signed by the relevant bank. But although the world of banking has come so far in the past 100 years, the monetary revolution has not yet ended.
In the 1920s Neo-Gothic and Neo-Classical architecture was in vogue, in the 2020s a different neo movement is set to take hold; neobanking. It’s no secret that most Aussies probably rely more on their debit card than actual cash nowadays, so it only makes sense that the next step will be fully online, digital banking. In fact a report released by the Reserve Bank of Australia in 2018 showed that Aussies make, on average, 500 electronic transactions per year, as opposed to 100 at the end of the 20th Century.
So if you’re keen to jump on the neobanks bandwagon this year, then you might want to check out the neobanks currently available or coming soon to a WiFi signal near you.
1. 86 400
How many seconds are there in a day? Yep you guessed it, 86 400. And that’s how many seconds of the day this Sydney-based neobank promises to be available to you. 86 400 launched at the end of 2019 with the aim to help Aussies take control of their finances with smarter banking.
The Aussie neobank currently has an everyday Pay Account and a Save Account to help you stash your cash and earn some sweet interest. A maximum interest rate which really is sweet, because at 2.25% per annum, it currently sits in joint first with fellow neobank Up, in the Mozo database for bonus savings accounts*. All you have to do to earn it, is make sure you deposit at least $1,000 into either your Pay or Save Account each month.
And not only can both accounts be accessed using the 86 400 app on your smartphone, but you can also pay with your smartphone, using either Apple Pay, Google Pay, Samsung Pay, Fitbit Pay or Garmin Pay.
But it doesn’t end there! In late 2019 86 400 launched its very own home loan and the neobank promises to launch more products and more exciting features in 2020.
RELATED ARTICLE: 86 400 out of the blocks as first Australian neobank to offer home loans
Ahead of the game, neobank Up started in Melbourne in 2017 and fully launched in 2018. Similar to 86 400, access to this neobank is solely up in the cloud, by way of the Up app. Up’s Everyday Account comes with no ongoing fees and the option to round up your purchases to the nearest dollar and transfer the difference to your linked savings account.
Plus talking of savings, Up’s Saver Account comes with a maximum interest rate of 2.25%, which is certainly nothing to be sniffed at in the current savings economy. Especially seeing as it currently sits in joint first in the Mozo database for bonus savings account interest rates, with neobank 86 400. This interest rate is available for balances between $0 to $50,000 and all you have to do to earn it, is make five successful purchases using your Up Everyday Account each month.
As if that wasn’t enough, Up also has a handy in-app feature that allows you to review your spending in detail, so you can gain some insight into where all your money is going and think about where you could cut back and save.
Finally it looks like Up will be going onwards and upwards in 2020, with new features and a new partnership with international money transfer company TransferWise.
3. Volt Bank
Although both were released in the 20s, the clean lines and vibrant teal colour of Volt Bank’s future app couldn’t be further from Fritz Lang’s grainy vision of the future, in his 1920s classic science fiction movie Metropolis.
Of course, one thing the two do have in common is that they can both be called pioneers. While Lang was a cinematic pioneer, Volt Bank was the first neobank to be granted a full Authorised Deposit Taking Institution (ADI) licence in January 2019 from the Australian Prudential Regulation Authority (APRA).
Now in 2020, Volt Bank has released its enticing savings account interest rate and is due to launch to the public in just one month’s time. Plus Volt Bank’s savings account not only comes with an enticing annual interest rate of 2.15%, but it also has no strings attached, meaning there are no conditions to meet to get it! The only thing to note is that it is only available for balances up to $245,000.
As to the future, Volt Bank promises to continue to better the savings experience in 2020 and have even promised an eye-catching teal-coloured card!
RELATED ARTICLE: Volt banking on a break with tradition as 2020 launch nears
100% digital, Sydney-based neobank Xinja started in 2017 with the aim to revolutionise the Aussie banking experience. The minds behind this neobank hope to make tracking spending and keeping up to date with bill payments easier for Aussies in 2020.
Plus if you’re keen to enter the digital world of Xinja, then you’ll be happy to hear that the neobank already has an everyday transaction account available to the public, the Xinja Bank Account and a savings account with a sweet interest rate. With Xinja's high interest savings account, Stash, you could earn up to 2.25% interest on your hard earning savings.
And if you're super keen for even more banking products from Xinja, chances are you won't have to twiddle your digital thumbs much longer. The neobank hopes to release even more exciting products in the year ahead.
Future Queensland-based neobank Infinity, aims to be part of the “next generation of banking.” While there isn’t a whole lot of information on this neobank, DayTek Capital hopes to get the ball rolling this year. The neobank has promised to make use of cutting edge technology including biometric security and augmented identification.
If any of that piques your interest, then make sure you watch this space, because there’s sure to be more news on Infinity in the coming year.
With the continuation of the digital revolution and the way banking is moving up into the cloud, there’s sure to be even more fintech startups getting in the Aussie banking game in the coming decade. But for now, these five might be worth taking a look if you want to take your first steps into the world of neobanks in 2020.
For more information on digital banking providers and products and to keep up to date with all the latest neobank news, why not head to our dedicated neobank hub or keep the page saved as a tab on your device so you never miss a story.
*Statistics correct as of the time of writing.