UBank

Last updated

UBank
Company type Division
Industry Financial services
FoundedOctober 1, 2008;16 years ago (2008-10-01)
Founder Gerd Schenkel
Headquarters Sydney, Australia
Key people
  • Philippa Watson (CEO)
  • Greg Sutherland (Founding Chair)
  • Ahmed Fahour (Founding CEO Sponsor)
ProductsBanking, financial and related services
Parent National Australia Bank
Website ubank.com.au

UBank is an Australian direct bank, that operates as a division of National Australia Bank (NAB). It was established in 2008, and provides savings products and home loans online and over the phone.

Contents

UBank operates under NAB's banking licence and uses its balance sheet, risk management and technology infrastructure. UBank also participates in the Australian government's deposit guarantee scheme. [1]

History and Growth

UBank was launched by Gerd Schenkel and Greg Sutherland for National Australia Bank on 1 October 2008, with the purpose of establishing a presence in the "self-directed" customer segment. [2]

NAB stated it aimed to attract new retail customers while operating independently to its other retail brands, [3] and in its 2009 annual report, NAB claimed that this strategy had been "successful". [4] UBank operates under NAB's banking licence and participates in the Australian government's deposit guarantee scheme. [5]

Deposits were said to exceed over $500 million in one month. [6] [7] NAB claimed Ubank's "customer advocacy and satisfaction levels" to be "among the highest of any institution in Australia" [8] In its 2009 annual report, NAB claimed "almost 10,000 new customers in a month" for UBank's USaver product. [9]

NAB's UBank has been compared to Qantas' Jetstar in terms of a strategy of internal innovation with the objective of opening new market segments for the parent company. [10]

In October 2012, in a media interview about NAB's results briefing, CEO Cameron Clyne claimed that UBank had "raised $15–16 billion in deposits". [11]

As of October 2015, UBank had $15.7 billion of customer deposits and $3.6b of mortgages. [12]

In March 2020, Philippa Watson was appointed CEO of UBank. [13]

As of July 2023, UBank reported $17b deposits and 700,000 customers. [14]

Acquisition of :86 400

A neobank [15] founded by Anthony Thomson [16] and Robert Bell [17] and majority owned by payments company Cuscal, [18] [19] 86 400 gained a licence to operate as an authorised deposit-taking institution in 2019. [20] In January 2021, NAB announced plans to acquire it for $220 million and merge it with UBank. [21] This was approved by the regulator despite concerns about reducing competition. [22] The transaction was completed in May 2021, with the 86 400 brand terminated a year later and incorporated into the Ubank branding. [23] By February 2023, however, the acquisition had drawn criticism from some customers who faced issues such as being locked out of their accounts and :86 400 staff, who criticised the company's direction. [24]

Products

UBank allows applicants to apply online or over the phone for a Term Deposit and deposit their money straight away using BPAY. This was a first for the Australian marketplace at that time. [25]

In August 2009, UBank launched a new online savings account ("USaver") that was reported to differentiate through its online application process. [26] [27]

In February 2011, UBank launched its first home loan product (dubbed "UHomeloan"). [28]

In August 2013, UBank launched USaver Ultra transaction account. [29] [30]

In August 2020, UBank ceased offering new accounts and term deposits to Self Managed Superannuation Fund (SMSF). [31] [32] During July 2022, UBank began terminating existing SMSF accounts, with an offer to transfer funds to existing NAB products. [33]

Awards

Branding and marketing

Logo of UBank at launch in 2008 UBank logo enwiki.jpg
Logo of UBank at launch in 2008

UBank was cited as an example of effective use of nontraditional marketing such as social media, [39] but also uses traditional marketing such as print [40] and television.

UBank's first TV Commercial was launched in 2009, and positioned its savings account using the tagline "Saving is the new spending", attempting to capture the spirit of the Global Financial Crisis at the time. [41]

UBank also launched a series of YouTube videos called Ubank Moneybox, meant to educate and entertain. [42] In February 2016 Ubank launched a new visual identity, designed to reposition the bank as a "utility". [43]

In 2019, UBank introduced a digital assistant named Mia, who aimed at helping home buyers apply for their home loans. According to UBank, Mia is the "latest tech innovation, designed to answer any burning questions you have about your home loan application. Short for ‘My Interactive Agent’, Mia helps simplify your experience by giving on-the-spot answers to a huge range of the most commonly asked questions during the home loan application." [44]

In May 2022, UBank rebranded their logo to incorporate the style of the acquired :86 400 branding to reflect the merged entity. [23]

Controversies

In 2016, UBank launched a controversial advertising campaign using terminally ill people which garnered many complaints. [45]

The company defended the campaign as being "disruptive". [46]

In 2022, a customer reported the bank to the Australian Financial Complaints Authority that they had not been able to access their account. In response, the bank sent a letter to a customer offering $100 compensation for their issues. However, according to the letter, the compensation was offered on the condition that they ceased taking further action against the bank and kept the agreement confidential. [47] This comes only a few months after multiple customers had money drained from their accounts. [48] [49]

See also

Related Research Articles

<span class="mw-page-title-main">National Australia Bank</span> Australian multinational bank

National Australia Bank Limited is one of the four largest financial institutions in Australia in terms of market capitalisation, earnings and customers. NAB was ranked the world's 21st-largest bank measured by market capitalisation and 52nd-largest bank in the world as measured by total assets in 2019.

<span class="mw-page-title-main">Commonwealth Bank</span> Australian multinational bank

The Commonwealth Bank of Australia (CBA), also known as Commonwealth Bank or simply CommBank, is an Australian multinational bank with businesses across New Zealand, Asia, the United States, and the United Kingdom. It provides a variety of financial services, including retail, business and institutional banking, funds management, superannuation, insurance, investment, and broking services. The Commonwealth Bank is the largest Australian listed company on the Australian Securities Exchange as of July 2024, with brands including Bankwest, Colonial First State Investments, ASB Bank, Commonwealth Securities (CommSec) and Commonwealth Insurance (CommInsure). Its former constituent parts were the Commonwealth Trading Bank of Australia, the Commonwealth Savings Bank of Australia, and the Commonwealth Development Bank.

<span class="mw-page-title-main">Bank of Queensland</span> Australian financial institution

The Bank of Queensland (BOQ), formerly known as the Brisbane Permanent Benefit Building and Investment Society (BPBBIS) between 1874–1970, is an Australian retail bank with headquarters in Brisbane, Queensland. The bank is one of the oldest financial institutions in Queensland, having begun as a building society. It now has 111 owner-managed branches throughout Australia, including thirty-six corporate branches and third-party intermediaries. They also have over 2,300 ATMs. The bank also owns Virgin Money Australia and ME Bank.

The Australian Securities and Investments Commission (ASIC) is an independent commission of the Australian Government tasked as the national corporate regulator. ASIC's role is to regulate company and financial services and enforce laws to protect Australian consumers, investors and creditors. ASIC was established on 1 July 1998 following recommendations from the Wallis Inquiry. ASIC's authority and scope are determined by the Australian Securities and Investments Commission Act 2001.

Banking in Australia is dominated by four major banks: Commonwealth Bank, Westpac, Australia & New Zealand Banking Group and National Australia Bank. There are several smaller banks with a presence throughout the country which includes Bendigo and Adelaide Bank, Suncorp Bank, and a large number of other financial institutions, such as credit unions, building societies and mutual banks, which provide limited banking-type services and are described as authorised deposit-taking institutions (ADIs). Many large foreign banks have a presence, but few have a retail banking presence. The central bank is the Reserve Bank of Australia (RBA). The Australian government’s Financial Claims Scheme guarantees deposits up to $250,000 per account-holder per ADI in the event of the ADI failing.

Tesco Personal Finance plc, trading as Tesco Bank, is a British retail bank which was formed in July 1997. The bank was formed as part of a 50:50 joint venture between The Royal Bank of Scotland and Tesco, the largest supermarket in the United Kingdom, employing 2,800 people.

<span class="mw-page-title-main">HSBC Bank Australia</span> Australian subsidiary of multinational bank

HSBC Bank Australia Limited is the Australian subsidiary of HSBC. The bank offers a wide range of financial services in Australia through a network of 36 branches and offices. These services include retail and commercial banking, financial planning, trade finance, treasury, and financial markets, payments and cash management, and securities custody.

<span class="mw-page-title-main">People's Choice Credit Union</span> Australian credit union

Heritage and People’s Choice Limited, trading as People's Choice, is an Australian credit union based in Adelaide, South Australia. It is one of Australia's largest credit unions, with branches located in South Australia, Northern Territory and Victoria, offering loans, credit cards, transaction and savings accounts, mortgages and insurance.

Commonwealth Securities Limited, or CommSec, is Australia's largest online stockbroking firm. It is a subsidiary of the Commonwealth Bank.

<span class="mw-page-title-main">Direct bank</span> Bank that only offers services remotely

A direct bank is a bank that offers its services only via the Internet, mobile app, email, and other electronic means, often including telephone, online chat, and mobile check deposit. A direct bank has no branch network. It may offer access to an independent banking agent network and may also provide access via ATMs, and bank by mail. Direct banks eliminate the costs of maintaining a branch network while offering convenience to customers who prefer digital technology. Direct banks provide some but not all of the services offered by physical banks.

<span class="mw-page-title-main">Zopa</span> British financial services company

Zopa Bank Ltd. is a British online bank which offers deposit accounts, personal loans and credit cards. It began as the world's first peer-to-peer lending company in 2005 and gained a full banking licence in 2020. The peer-to-peer side of its business closed in December 2021.

<span class="mw-page-title-main">ME Bank</span> Australian direct bank

ME Bank, also known as ME, is an Australian direct bank based in Melbourne. It became a subsidiary of Bank of Queensland in July 2021.

Simple was an American neobank based in Portland, Oregon. It was recognized as the first neobank and operated between 2009 and 2021.

<span class="mw-page-title-main">ING Australia</span> Australian bank

ING Bank (Australia) Limited is a direct bank operating in Australia. It is a wholly owned subsidiary of the multinational Dutch bank, ING Group. ING in Australia holds an Australian banking licence as a foreign subsidiary company.

<span class="mw-page-title-main">Gerd Schenkel</span>

Gerd Schenkel is an Australian-German businessperson. He is the founder of UBank, former Chair of Credit Clear (ASX.CCR), a former non-executive Director of Helia (ASX.HLI), and Senior Adviser at Kearney, a global consultancy.

<span class="mw-page-title-main">Neobank</span> Online-only direct bank

A neobank is a type of direct bank that operates exclusively using online banking without traditional physical branch networks, thus challenging traditional banks.

Xinja is an Australian fintech company and former bank. Xinja was granted a full banking license by the Australian Prudential Regulation Authority in 2019. Xinja Bank was the second Australian neobank to be made an authorised deposit-taking institution. The company exited banking in December 2020 and returned to business in fintech.

Up, also known as Up Money and Up Banking, is an Australian neobank based in Melbourne, Victoria, Australia with more than 900,000 mostly young Australian customers.

:86 400 Australian bank

:86 400 was an Australian neobank. It was founded in 2019 by Robert Bell and Anthony Thomson.

The development of neobanks in Europe is a trend in the European financial landscape beginning in the 2010s. Neobanks are a type of digital-only bank that offer financial services primarily through mobile and web applications, with little or no reliance on physical branches. The trend was driven by advancements in technology, changing consumer preferences, and supportive regulatory frameworks. Neobanks provide a range of services, including personal accounts, loans, and payment services, with a focus on user-friendly interfaces, low fees, and innovative features. In 2022, the European neobank market has generated over 570B transactions.

References

  1. ↑ "About us". Ubank. Retrieved 29 October 2008.
  2. ↑ "NAB – NAB unveils UBank". National Australia Bank. Archived from the original on 4 November 2008. Retrieved 29 October 2008.
  3. ↑ Lekakis, George (2 October 2008). "NAB moves into new territory with U". Melbourne Herald Sun. Archived from the original on 30 June 2012. Retrieved 2 October 2008.
  4. ↑ "2009 Annual Report" (PDF). NAB. December 2009.
  5. ↑ "Who we are". UBank.
  6. ↑ "Ubank collects $500 m in first month". The Sheet. 4 November 2008. Archived from the original on 30 June 2012. Retrieved 22 June 2009.
  7. ↑ "NAB Australian Region market update" (PDF). NAB. 17 November 2008.
  8. ↑ "Ubank Fact Sheet". National Australia Bank. 30 June 2009. Archived from the original on 5 July 2012. Retrieved 14 February 2016.
  9. ↑ "2009 Annual Report". NAB. 1 November 2009.[ permanent dead link ]
  10. ↑ "Can NAB's Ubank emulate Jetstar?". Business Spectator. 7 December 2009.
  11. ↑ "KGB: NAB's Cameron Clyne". Business Spectator. 1 November 2012. Retrieved 14 July 2013.
  12. ↑ "Financial results - NAB". nab.com.au. Retrieved 26 September 2016.
  13. ↑ "Philippa Watson, CEO".
  14. ↑ "Ubank: growing with the digital generation". NAB News. Retrieved 7 June 2024.
  15. ↑ Kane, Annie (31 May 2021). "86 400 launches direct offering". www.theadviser.com.au. Retrieved 1 November 2021.
  16. ↑ Griffiths, Katherine (11 October 2021). "Bank pioneer Anthony Thomson to lead 'buy now, pay later' firm Zip". The Times. ISSN   0140-0460 . Retrieved 1 November 2021.
  17. ↑ Birmingham, Andrew (12 October 2021). "Update: At 86 400, founder Robert Bell stepping down, Philippa Watson steps up". Digital Nation. Retrieved 3 November 2021.
  18. ↑ Yeates, Clancy (27 June 2018). "Seconds out: new 'challenger' 86,400 bank targets big four's turf". The Sydney Morning Herald. Retrieved 4 November 2021.
  19. ↑ Pike, Rebecca. "New bank launched in Sydney". www.brokernews.com.au. Retrieved 4 November 2021.
  20. ↑ Derwin, Jack (18 July 2019). "Australia just got a new digital bank called 86 400 and its chair has a history of taking on the big end of town". Business Insider Australia. Archived from the original on 29 January 2020. Retrieved 4 November 2021.
  21. ↑ Crozier, Ry (29 January 2021). "NAB to buy out neobank 86 400". iTnews. Archived from the original on 29 January 2021. Retrieved 1 February 2021.
  22. ↑ 'Evans and Partners analyst Matthew Wilson said it was unlikely 86 400 would have been a vigorous competitor to NAB, but suggested it may have addressed “the excess profits” in retail banking'Yeates, Clancy (28 January 2021). "NAB chases younger clients in 86 400 buyout". The Sydney Morning Herald. Retrieved 16 November 2021.
  23. 1 2 "Customers app-laud new ubank digital look and feel". 17 May 2022.
  24. ↑ Koob, Simone Fox (10 February 2023). "'Incredibly frustrating': How a neobank merger caused headaches for ubank". The Sydney Morning Herald. Retrieved 7 June 2024.
  25. ↑ "The Bank Channel: NAB launches Ubank". The Bank Channel. 30 September 2008. Retrieved 29 October 2008.
  26. ↑ "NAB pioneers 'five-minute' online bank account". IT Wire. 6 August 2009. Archived from the original on 9 August 2009. Retrieved 14 February 2016.
  27. ↑ "Ubank launches online savings account with unbeaten interest rate". NAB. 6 August 2009. Archived from the original on 22 July 2012. Retrieved 14 February 2016.
  28. ↑ Taylor, Peter (23 February 2011). "NAB fires new weapon in bank wars". Herald Sun. Retrieved 17 November 2011.
  29. ↑ "UBank news".
  30. ↑ "UBank targets deposits with new account". Archived from the original on 1 December 2017.
  31. ↑ "UBank USave SMSF reviews | ProductReview.com.au".
  32. ↑ "Online Bank | Bank Accounts & Home Loans - ubank". www.ubank.com.au.
  33. ↑ "NAB Cash Manager Account special interest rate". www.nab.com.au.
  34. ↑ "Best of the Best: 2010 Survival Guide". A Current Affair, Channel 9. 1 December 2009. Archived from the original on 22 February 2016. Retrieved 14 February 2016.
  35. ↑ "Innovating for Customers". BAI.
  36. ↑ "Award Winners". Australian Lending Awards. Retrieved 14 July 2013.
  37. ↑ "UBank Archives". 27 March 2019.
  38. ↑ "Blue Ribbon Awards: The winners". Archived from the original on 1 December 2017. Retrieved 27 November 2017.
  39. ↑ "NAB goes online to reach people allergic to banks". Sydney Morning Herald. 23 April 2009.
  40. ↑ "See more executions from Ubank's USaver press campaign". Newspaper works. 20 September 2009.
  41. ↑ "UBank USaver Savings is the new spending - YouTube". m.youtube.com. 16 February 2012. Retrieved 26 September 2016.
  42. ↑ "Direct Banking Strategy Gerd Schenkel". slideshare.net. 25 January 2010. Retrieved 26 September 2016.
  43. ↑ "Rebrand positions Ubank as the utilitarian choice | Marketing Magazine". marketingmag.com.au. 2 February 2016. Retrieved 26 September 2016.
  44. ↑ "Introducing Mia: A new face in the home loan space". ubank.com.au. Retrieved 11 February 2019.
  45. ↑ "Ubank faces ad ban after complaints issued to watchdog - AdNews".
  46. ↑ "UBank CMO stands by campaign – 'We need it to be disruptive' – AdNews".
  47. ↑ Koob, Simone Fox (9 January 2023). "Ubank offers customer $100 compensation - with a catch". The Age. Retrieved 9 January 2023.
  48. ↑ Sharples, Sarah (21 December 2022). "Melbourne man's 'traumatising' experience as $20,000 drained from Ubank account". News.com.au.
  49. ↑ Sharples, Sarah (5 December 2022). "Western Australian man's $580k live savings disappears from Ubank account". News.com.au . Retrieved 9 January 2023.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.