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Judo Bank
IndustryFinancial services
Founded16 October 2016
HeadquartersMelbourne, Australia
Key people
Founders: Alex Twigg, Chris Bayliss, David Hornery, Jacqui Colwell, Joseph Healy, Kate Keenan, Mal Hiscock, Tim Alexander
ProductsBusiness Banking, Term Deposits, financial and related services: Business Loan, Line of Credit, Equipment Loan, Finance Lease, Home Loan, Personal Term Deposit, SME Guarantee Scheme Loans
Websitewww.judo.bank

Judo Bank is an Australian bank focused on small and medium-sized enterprise lending but also offers a range of personal term deposit products to consumers.

History

Judo was founded with an initial seed investment from an Australian consortium of family offices, led by businessman Geoff Lord.[1]

Followed by Australia's largest capital raising of 2018,[2] Judo Capital launched in March 2018, raising more than $140 million from Australian and international investors, coordinated by Ironbridge Capital.[3][4][1][5][6]

Former National Australia Bank executives – including co-founders Joseph Healy, David Hornery, Tim Alexander, Chris Bayliss and Jacqui Colwell – serve on the board.[7]

Ironbridge Capital, Canadian pension fund manager OPTrust, Myer Family Investments, Abu Dhabi Capital Group, Zhong Yi Investment and Credit Suisse Asset Management, Cambooya, Inception Asset Management, Esson and CH Warman Group own shares in Judo Capital.[3][8][9]

Former Australian Treasury Secretary John Fraser joined the board of Judo Capital, alongside former Federal Small Business Minister Bruce Billson.[10]

In November 2018, Credit Suisse increased their interest in Judo with a $350 million debt facility.[11][12][13] followed by a $100 million facility from Goldman Sachs in April 2019.[14][15]

In April 2019, The Australian Prudential Regulation Authority announced it had granted Judo Bank Pty Ltd a licence to operate as an authorised deposit-taking institution (ADI) without restriction following its application in May 2018. As part of the license grant, the business changed its name from Judo Capital to Judo Bank.[16][17]

In June 2019, Judo Bank closed series B round with $345 million in firm commitments and an unnamed institution granted an extension of a few weeks to complete due diligence, with total expected to exceed $400m.[18][19]

In August 2019, After the latest $400m raising, new investors now include the €23bn Paris and London fund Tikehau Capital, and the $US105bn Boston-based alternative investment firm Bain Capital.[20]

In September 2019, Judo Bank entered the retail deposits,[1] and was named as the best Aussie startup to work for, according to LinkedIn's second annual top startups list.[2]

In November 2019, KPMG and H2 Ventures Global Fintech 100 list ranked Judo Bank at No. 33.[21][22]

In January 2020, Judo Bank lent $1B to Australian businesses raising, and another $1B in digital retail term deposits.[23][24]

In February 2020, Judo Bank was announced the winner of the Mozo Experts choice awards 2020 Term Deposits. "Mozo Experts Choice Awards showcase providers who outperformed their competitors in delivering a great product to customers," said Mozo's Kirsty Lamont, "Judo scooped one of the top awards after being compared with 68 term deposit accounts, offering some of the best interest rates across short, medium and long term investments, which is no small feat."[25]

In March 2020, Judo Bank signed a further three-year, $350 million committed debt facility with Citi Bank bringing the total to $1billion on top of the $1.3 billion in government-guaranteed customer deposits. "As in the global financial crisis, deposits are flowing to the banking sector, including us" said David Hornery Co CEO.[26]

On Thursday, 2 April 2020, The Australian government announced that it would invest an initial $250 million into Judo Bank's lending warehouse through the Australian Office of Financial Management's (AOFM) Australian Business Securitisation Fund and a further $250 million through its recently announced Structured Finance Support Fund (SFSF). The investment from the AOFM makes Judo Bank the first recipient of capital from the government's $2 billion small and medium enterprise funding scheme that was unveiled in November 2018.[27][28][29][30]

In May 2020, Judo Bank had raised $230 million in fresh equity at a post-money valuation north of $1 billion, from existing investors, lifting it into an exclusive club of local unicorns and showing the support of existing investors despite the risks COVID-19 presents to business banking. "The support we’ve received for our third round, at an increased valuation to our second round capital raise last year, underscores the confidence and commitment our existing investors have in Judo, particularly at a time of extreme volatility in global markets, that has impacted all bank valuations," Mr Hornery said in a statement.[31][32][33][34][35]

Having joined the "Unicorn Club" in May 2020 with a valuation of $1.6 billion, Judo Bank was the first of the Aussie challenger banks to reach the coveted position.[36]

In July 2020, Judo Bank won the Bank of the Year – Term Deposits Award. Canstar Research noted Judo Bank was the market leader among banks when it came to interest rates, and beat the market average on features, with a market-leading performance on options offered at term deposit maturity.[37]

In September 2020, Judo Bank was crowned the winner of the Finder Awards Term Deposit for our 12-month term deposit.[38]

In September 2020, KPMG's Pulse of Fintech report showed that venture capital investment in Australia's fintech sector had charged ahead, up 153% year on year, and that one of the two largest fintech transactions regarded Judo Bank with $203.4m.[39]

In September 2020, According to LinkedIn's 3rd Annual Top Startups, Judo Bank was named as best and most resilient Aussie Startup to work for.[40]

In December 2020, Judo Bank was ranked among the top 10 independent neo-banks across the globe by WhiteSight's Top 20 neo-banks of 2020 research, which based the ranking of the neo-banks on valuation. Judo Bank was the only Australian bank to rank among the top 10 neo-banks.[41]

Operations

Judo follows the SME challenger bank model developed by Aldermore, Shawbrook Bank and OakNorth Bank in the UK.[42][43]

Political commentary

Small Business & Family Enterprise Ombudsman Kate Carnell says Judo Bank's launch is well-timed with the lending shortfall continuing to grow. "There is no competition", Carnell said. "The big four banks have 80 percent plus of the SME lending market and they mostly don't lend except if it is secured against property and that means access to capital is very difficult for many SMEs."[44]

Australian Prime Minister, Scott Morrison gave a virtual speech at the Singapore FinTech Festival on 8 December 2020, speaking about fintechs' positive impact on the economic recovery, referring to Judo and four Australian fintechs in particular. "I am incredibly proud of what our Aussie start-ups and early age ventures are achieving, as well as our well-established unicorns and what they’re achieving. You know some of them: Atlassian, Airwallex, Afterpay, Judo Bank, Athena Home Loans."[45]

References

  1. ^ a b "Judo Capital takes fight to big four on SME lending". 25 March 2018.
  2. ^ "Good tidings we bring: The 10 biggest capital raises of 2018". SmartCompany. 16 December 2018. Retrieved 5 January 2019.
  3. ^ a b "Start-up SME bank Judo Capital raises $140 million". Australian Financial Review. 31 July 2018. Retrieved 5 January 2019.
  4. ^ Waters, Cara (31 July 2018). "Small business challenger bank Judo raises $140 million". The Sydney Morning Herald. Retrieved 5 January 2019.
  5. ^ "» Judo Capital Media Release 27th March 2018". judocapital.com.au.
  6. ^ Randall, Steve. "Ashurst advises Australian challenger bank on A$100m capital raising". Australasian Lawyer.
  7. ^ "SME lender Judo Capital launches with a focus on building relationships with customers - Startup Daily". 27 March 2018.
  8. ^ "Heavyweights write big cheques for small business lender Judo Capital". Financial Review. 9 May 2018. Retrieved 2 June 2018.
  9. ^ Pash, Chris (2 August 2018). "$140 MILLION: Australian digital bank Judo Capital just completed this year's biggest startup equity raise". Business Insider Australia. Retrieved 5 January 2019.
  10. ^ "John Fraser joins board of Judo Capital". Australian Financial Review. 12 September 2018. Retrieved 5 January 2019.
  11. ^ "Challenger bank Judo signs $350m debt facility with Credit Suisse". Australian Financial Review. 25 November 2018. Retrieved 5 January 2019.
  12. ^ "Offshore funds fuel Judo". The Australian. Retrieved 5 January 2019.
  13. ^ "Australian startups and young tech companies secured over $1 billion in funding in the last quarter of 2018 -". March 2019.
  14. ^ "Goldman Sachs opens $100 million funding line with Judo". Australian Financial Review. 1 April 2019. Retrieved 3 April 2019.
  15. ^ "Goldman bankrolls new SME lender Judo Capital". 15 April 2019.
  16. ^ "Register of authorised deposit-taking institutions | APRA".
  17. ^ "Judo gets licence in shot across banks' bows". 24 April 2019.
  18. ^ "Fintech Judo banks big raising, targets $10b loan book". 2 June 2019.
  19. ^ "Subscribe to the Australian | Newspaper home delivery, website, iPad, iPhone & Android apps".
  20. ^ "Subscribe to the Australian | Newspaper home delivery, website, iPad, iPhone & Android apps".
  21. ^ https://www.businessnewsaus.com.au/articles/aussie-firms-punch-above-their-weight-in-fintech100-list.html
  22. ^ "7 Australian companies made the Fintech 100 list this year, including Airwallex and Afterpay Touch".
  23. ^ "Big four business bankers flood Judo with job applications". 16 January 2020.
  24. ^ "Subscribe to the Australian | Newspaper home delivery, website, iPad, iPhone & Android apps".
  25. ^ "Judo Bank Term Deposit wins big in this year's Mozo Experts Choice Awards".
  26. ^ "Judo inks new $350m facility with Citi to lift lending to SMEs". 18 March 2020.
  27. ^ "Government ploughs $500m into neobank Judo in bid to spur SME loans". 2 April 2020.
  28. ^ "ABSF announces its first $250m investment". 2 April 2020.
  29. ^ "Government ploughs $500m into neobank Judo in bid to spur SME loans". 2 April 2020.
  30. ^ https://www.businessnewsaus.com.au/articles/challenger-bank-judo-poised-to-guide-smes-through-covid-19-crisis.html
  31. ^ "Judo Bank is now a unicorn". 6 May 2020.
  32. ^ "Judo Bank revels in unicorn status as investors tip in another $230m". 6 May 2020.
  33. ^ "Judo Bank secures $230 million and unicorn status, as COVID-19 changes the tide of SME banking". 7 May 2020.
  34. ^ "SME lender Judo Bank just became a unicorn with another massive $230 million raise". 7 May 2020.
  35. ^ "Judo Bank achieves Unicorn status on $230 million fund raise". 11 May 2020.
  36. ^ "The three Aussie start-ups worth billions". 25 January 2021.
  37. ^ "2020's Award-Winning Term Deposit Providers | Canstar".
  38. ^ "Finder Awards 2020 Best Term Deposit (12 month)". 8 September 2020.
  39. ^ "Australia recognised as "strong fintech hub" globally".
  40. ^ "LinkedIn Top Startups 2020: The 10 Australian companies on the rise".
  41. ^ "Top 20 Neo-Banks of 2020". 28 December 2020.
  42. ^ Bindi, Tas (27 March 2018). "Former NAB execs officially launch new SME lender".
  43. ^ "Australian NeoBank Judo Capital Will Focus on SME Banking". 30 March 2018.
  44. ^ Waters, Cara (26 March 2018). "Heat on big four as new bank launches with SME focus". The Sydney Morning Herald.
  45. ^ "Virtual Speech - Singapore FinTech Festival | Prime Minister of Australia".
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