Digital-Only Banks: Transactional Accounts and Regulation Authority

digital-only banks: Last week, two digital-only banks launched in Australia, according to The Guardian. On 9 September, Xinja was granted an authorised deposit-taking institution licence by the Australian Prudential Regulation Authority and immediately offered transactional accounts to some customers on its waiting list. With names that sound like tech startups or children's toys optimistic branding palettes of aqua, violet and millennial pink, and websites that promise banking experiences that are easy as and fun these financial upstarts have no interest in looking like their legacy peers, even when they're owned by them. The bank manager will see you now is Monzo ready to grow up Read more Meanwhile 86 400 the all-digits moniker comes from the number of seconds in a day a new bank backed by transactional banking company Cuscal, launched its everyday and savings accounts to the public. These banks join Up, an app from Bendigo and Adelaide Banks that launched late last year; Judo, an SME-focused neobank; and Revolut, a British neobank with permission to operate in Australia on the digital banking landscape. Gaining a deposit-taking institution licence means that a new bank adheres to the same regulations and security checks as any other Australian bank, including the government-backed protection of customers' savings, up to a value of 250,000. (news.financializer.com). As reported in the news.