Heard of Judo Bank? Well, if you have or if you haven’t, it’s a name that you’ll be hearing more and more about.
Yesterday, Judo Bank, a business-focused challenger bank that only launched (as a bank) in April last year, announced they’d hit $1 billion in term deposits - that’s only nine months since they became an Authorised Deposit-Taking Institution (ADI).
But that’s not the only thing turning heads.
Judo Bank’s term deposit has some of the highest interest rates on Mozo’s database, with a range of terms from six months to five year.
Plus, the bank is also supporting small Aussie businesses by lending 95% of deposits it’s received to SMEs, instead of favouring home loans like the big banks.
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Judo Bank’s co-CEO, Joseph Healy, explained that two decades ago, the amount banks lent to home buyers was the same as to what they’d lend to small business, but now it’s not the same story.
“Today, the lending landscape is barely recognisable, with the banks adopting an unhealthy bias towards household lending. So, in 2020, for every dollar the big banks lend homebuyers, they only lend 25 cents to SMEs, which has resulted in a $93 billion funding gap,” Mr Healy said.
“This makes the rapid growth in our deposits business so important because Judo Bank is able to level the playing field and address the market failure, by providing an opportunity for businesses and the broader community to support business funding at competitive rates.”
Has Judo Bank got your attention? Well, say hello to it’s term deposit, it may just turn your head a little more.