Judo Bank will introduce savings accounts and transaction accounts for business and the mass market.
This will allow the bank to diversify its deposit gathering away from its reliance on term deposits.
There is a “significant opportunity to double Judo’s deposit addressable market” Frank Versace, Chief Strategy and Growth Officer at Judo Bank told an investor day yesterday.
Two new products will be offered:
• Business Online Savings Accounts – “high rate [with] no account conditions.”
• High Interest Online Savings Accounts – “standard base rate, and high bonus rate upon meeting account conditions.”
The business savings account should be in market by the end of 2025 and the consumer account some time next year.
Operators of self-managed superannuation funds, which are a key client base for term deposits, will be a particular target for the business savings account.
Judo anticipates the new deposit products will be priced at a long-run margin below term deposits and thus help to lower funding costs.