The lender, Judo Capital, has now been granted a licence to operate as an authorised deposit-taking institution (ADI) under Australia’s Banking Act.
Last week, the bank’s chief executive, Joseph Healy, said these plans were in the works from the outset.
“From day one, when we decided to build Judo, we built it with the intention of eventually becoming a bank,” he said.
“We believe that – notwithstanding the higher regulatory cost associated with being a bank – there are a lot of other benefits that allow you to grow and offer businesses a greater range of options than we would be able to offer if we were a non-bank lender,” he said.
Challenger banks are becoming an increasingly popular option in the market for small business and investors, as access to credit tightens in a post royal commission environment, and in the aftermath of regulatory tightening from APRA last year.
Investors looking for new lines of credit or to refinance can access our tips and traps for getting a loan approved in 2019.