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Writer's pictureDonnelle Brooks

Judo Bank Pros and Cons: a review

In the ever-evolving landscape of banking, Judo Bank has emerged as a trailblazer, offering a distinctive approach that sets it apart from both traditional banks and neobanks. Founded on the principles of personalized service, tailored solutions, and a commitment to SMEs (Small and Medium-sized Enterprises), Judo Bank is revolutionizing the banking experience for businesses across Australia. In this article, we'll delve into the aspects that make Judo Bank stand out from the crowd, highlighting its unique offerings and how they resonate with both entrepreneurs and established enterprises.


Overview:


What is Judo Bank?

Unlike traditional banks and their often impersonal procedures, Judo Bank embraces a human-centric approach to banking. By dedicating specialized relationship managers to each client, Judo Bank fosters meaningful connections, understanding the unique needs and aspirations of every business owner. This personalized touch empowers entrepreneurs with expert guidance and a deep understanding of their financial landscape, building trust and loyalty.


Who uses Judo Bank?

Judo Bank recognizes the vital role of SMEs in driving economic growth and prosperity. Unlike some neobanks that focus primarily on consumer banking, Judo Bank directs its attention to the underserved SME segment. It offers a wide range of tailored financial solutions, including business loans, equipment financing, and transactional services. By catering specifically to SMEs, Judo Bank addresses the financial challenges faced by these businesses, thus providing a competitive edge over traditional banks and other neobanks.


Who founded Judo Bank?

Judo Bank was founded by Joseph Healy and David Hornery, Chris Bayliss, and Tim Alexander. They co-founded the bank in 2016 with the vision of providing a unique and personalized banking experience for Small and Medium-sized Enterprises (SMEs) in Australia. Joseph Healy serves as the Chairman, and David Hornery is the Chief Executive Officer (CEO) of Judo Bank. With their expertise and dedication to supporting SMEs, they have successfully established Judo Bank as a significant player in the Australian banking industry.


Who owns Judo Bank?

Judo Bank is a privately owned Australian bank. It is currently a publicly traded company with shares owned by overseas and Australian investors. It trades on the ASX with the code JDO.


Is Judo Bank only in Australia?

Judo Bank is primarily focused on the Australian market. It was established to provide specialized banking services to small and medium-sized enterprises (SMEs) in Australia. However, the bank's expansion plans have evolved, and they now offer term deposit products to consumers.


Does Judo bank have branches?

Judo Bank primarily operates as a digital bank and does not have a traditional network of physical branches like traditional banks. Instead, it offers its banking services primarily online and through digital channels. This allows them to keep costs lower and provide specialized services to small and medium-sized enterprises (SMEs) in Australia.


However, it's worth noting that their digital platform may offer customer support options, including phone and online chat support, to assist customers with their banking needs. To get the most up-to-date information on their services and customer support options, I recommend visiting Judo Bank's official website or contacting their customer service directly.


How many customers does Judo Bank have?

Judo Bank has about 10,000 customers, which may not sound like much. But from those customers it has a market capitalization of over $1 Billion. That means each customer has worth about $100,000 tied up with Judo bank, in either loans or term deposits. This is because they target high value customers through small to medium enterprises (SME).


How to buy Judo Bank shares?

To purchase Judo Bank shares, you'll need to follow a few straightforward steps. Firstly, you should open a brokerage account with a reputable financial institution (I suggest Commsec) or an online trading platform if you don't already have one. Next, deposit the funds you wish to invest in Judo Bank shares into your brokerage account. Once your account is funded, you can search for Judo Bank's stock symbol (if it's publicly traded) on the exchange where it is listed, typically the Australian Securities Exchange (ASX) in the case of Judo Bank. After locating the stock, place an order to buy shares at your desired price. You can choose between different order types, such as market orders or limit orders, depending on your trading strategy. Finally, confirm your purchase, and once the order is executed, you'll become a shareholder in Judo Bank. Remember to stay informed about the company's performance and market trends to make informed investment decisions.


Is Judo Bank safe?

Judo Bank was considered a safe and reputable financial institution in Australia. Judo Bank is regulated by the Australian Prudential Regulation Authority (APRA), which imposes strict regulations and standards on banks to ensure their stability and security. Additionally, customer deposits with Judo Bank were covered by the Australian government's Financial Claims Scheme (FCS), which guarantees deposits up to a certain limit in the event of a bank failure. However, the safety and stability of any financial institution can change over time, so it's crucial to stay up-to-date with the latest financial news and reports regarding Judo Bank or any other bank you're interested in to make an informed assessment of its current safety. Checking with regulatory authorities and consulting with financial experts can also provide valuable insights into the bank's financial health and security.


Is Judo Bank good for term deposits?

Judo Bank is known for offering competitive term deposit rates in the Australian market. They position themselves as a challenger bank focused on providing personalized and competitive banking services to businesses and individuals, including term deposits.


The current term deposit rates Judo are offering (as of 13.09.23) range from 4.7% to 5.05%. In comparison to Heritage which is offering 3.95% - 5.00% and Commbank which is offering 3.45% - 4.25%, and you can see that Judo bank is much more competitive than mainstream banks.


Judo Term deposit rate comparison
Judo Term deposit rate comparison

Is Judo Bank government guaranteed?

Yes, under the Financial Claims Scheme, deposits with Judo Bank are secured by the Australian Government up to a maximum of $250,000 per account holder.


This means that if Judo Bank were to experience financial difficulties or go into receivership, the government would guarantee deposits up to the FCS limit for eligible account holders. However, any deposits above this limit would not be covered by the government guarantee.


Does Judo Bank check your credit rating?

Yes, Judo Bank, like most financial institutions, will check your credit rating or credit score when you apply for certain financial products like loans. The extent to which they assess your credit rating can depend on the specific product you're applying for and their underwriting policies. A good credit rating is often a key factor in determining your eligibility and the terms of the financial product you seek. They will not check your credit rating for a term deposit.


If you are concerned about a credit check impacting your credit score or wish to understand Judo Bank's specific credit assessment policies, it's advisable to contact the bank directly or review their terms and conditions to gain a clear understanding of their credit evaluation processes. Keep in mind that credit checks are a standard practice in the financial industry to assess an applicant's creditworthiness and manage lending risk.


The Bottom Line on Judo Bank

Judo Bank had garnered a positive reputation in Australia's financial landscape. It positioned itself as a challenger bank, aiming to provide personalized and competitive banking solutions, particularly to small and medium-sized businesses. Many customers appreciated its customer-centric approach, competitive interest rates on term deposits and savings accounts, and its focus on relationship banking. However, whether Judo Bank is considered "good" can vary depending on individual financial needs and preferences. It's essential for potential customers to research the current offerings and customer reviews to determine if Judo Bank aligns with their specific banking requirements and goals. Financial institutions can evolve, so staying up-to-date with the latest information is crucial when assessing their suitability.


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