Judo hits $1bn in loan originations

The Australian Prudential Regulation Authority granted Judo Bank with its licence to operate as an authorised deposit-taking institution (ADI) without restrictions in April 2019.

The lender-turned-neobank offers loans to SMEs starting from $250,000, as well as line of credit facilities, equipment loans and finance lease solutions.

According to Joseph Healy, the bank’s co-CEO, approximately 95 per cent of the funds loaned to SMEs has come from term deposits placed with Judo.

He added that the bank’s rapidly growing loan book highlights the extent to which SMEs struggle to get credit from traditional big banks.

“The big banks have claimed that their ability to lend to Australian SMEs has been hampered by tightening lending standards, arguing that there is a lack of demand for credit from small and medium-sized businesses,” Mr Healy said. 

“The fact that a challenger bank like Judo is able to lend over $1 billion to SMEs within nine months of receiving a banking licence debunks that particular claim.

“The truth is our major banks gave up on SMEs long ago, and this is reflected in the growing finance gap uncovered by our own research, which found that unmet credit had ballooned from $83 billion to $90 billion in the 12 months to September 2019. 

“As Australia’s first dedicated SME Bank, we’re here to help SMEs access the funding they need, when they need it, and we will continue to rapidly expand our loan book to ensure Australian SMEs have access to vital funding.” 

[Related: SME lender announces policy changes]