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The business partners accused of scamming Westpac allegedly funnelled tens of millions into high-end homes and a string of petrol stations
- “Banks don’t want the regulator to step in”
Industry head unpacks the level of risk in the First Home Loan Deposit Scheme
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Digital Bank, Neobank – what’s the difference? Well in an interview with The AFR, the CEO of Australia’s newest digital bank, Simon Beitz (who is ex-Suncorp head of innovation) said that he, for one, wasn’t sure.
“We are just a digital bank – I don’t know what neobanks are. I think they are just people in T-shirts,” the Alex co-founder said.
But that confusion aside, it looks at least one neobank (those people in T-shirts) have actually got very big (mortgage) dreams.
While digital bank Alex has an $8m loan book and is hoping to hit $23m by the end of the year, neobank Volt has announced that is aiming for 1.5% of the home loan market – about $30 billion.
One of the chief architects of Volt’s ambitious program is Chairman Graham Bradley, who was HSBC Australia’s chairman. He is hoping that his efforts to gain $600 million in regulatory funds will kickstart the neobank’s assault on Australia’s mortgage market.
“Our shareholders believe very strongly in our ability to scale and capture a meaningful share of the Australian banking market,” Bradley said to the AFR.
We may soon see whether our traditional bankers, or men in t-shirts, will rule the mortgage world.