Ubank Place, Arizona

Ubank (stylised as 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 over the Internet and telephone.

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.

History

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.

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

Ubank was underpinned with the "Nextgen" technology provided by Oracle. After spending approximately $AUD2B, it was written off.

Deposits were said to exceed over $500 million in one month. NAB claimed Ubank's "customer advocacy and satisfaction levels" to be "among the highest of any institution in Australia" In its 2009 annual report, NAB claimed "almost 10,000 new customers in a month" for Ubank's USaver product. Ubank has been acknowledged as the driver of NAB's fast growth in deposit market share compared to other major banks.

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.

In July 2010, Alex Twigg was named as replacement for founder Gerd Schenkel. In May 2012, Ubank scored 93.2% in a Roy Morgan customer satisfaction survey.

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". This compares to $18.5 billion in deposits held by ING Direct as of September 2012.

As of October 2015, Ubank had $15.7 billion of customer deposits and $3.6b of mortgages.

In March 2020, Philippa Watson was appointed CEO of Ubank.

Acquisition of :86 400

A neobank founded by Anthony Thomson and Robert Bell and majority owned by payments company Cuscal, 86 400 gained a licence to operate as an authorised deposit-taking institution in 2019. In January 2021, NAB announced plans to acquire it for $220 million and merge it with Ubank. This was approved by the regulator, despite concerns about reducing competition.'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' The transaction was completed in May 2021, with the :86 400 brand terminated a year later and incorporated into the Ubank branding.

Products

Ubank allows applicants (both new and existing) 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.

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

In February 2011, Ubank launched its first home loan product (dubbed "UHomeloan").

In August 2013 Ubank launched USaver Ultra transaction account.

In August 2020 Ubank ceased offering new accounts and term deposits to Self Managed Superannuation Fund (SMSF). During July 2022 Ubank is terminating existing SMSF accounts, with an offer to transfer funds to existing NAB products.

Awards

* In December 2009, UBank's USaver online savings account was awarded Money Magazine's "Best of the Best" award.
* In October 2011 UBank won the BAI Financial Global Product Innovation Award for its refinance mortgage UHomeloan.
* In the 2012 Australian Lending Awards UBank was named Best Online Operator
* November 2012 Ubank'
people like you
app wins best in show at Finovate Asia
* 2013 AFR Smart Investor Blue Ribbon Direct Institution of the Year

Branding and marketing

Ubank was cited as an example of effective use of nontraditional marketing such as social media, but also uses traditional marketing such as print 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.

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

In May 2022 Ubank rebranded their logo to incorporate the style of the acquired 86400 branding, announcing that the "old" nab BSB and account numbers would transition to the "new" branding later in the year.

Controversy

In 2016, Ubank launched a controversial advertising campaign using terminally ill people which garnered many complaints.

The company defended the campaign as being "disruptive".

Innovation

In 2019, Ubank introduced the world's first "digital human", 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."

This innovative piece of work was deemed to pose a potential threat to mortgage brokers and their businesses. Alongside the changes to the mortgage broking industry, put forth by the Hayne Royal Commission, this digital approach was seen as inevitable by Greg Dickason, CoreLogic Global Head of Technology, as doubtful as it is that such technology could match the high levels of customer satisfaction that many borrowers have with their mortgage brokers.

References

External links

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{{Banking Industry in Australia

Banks of Australia
Banks established in 2008
Financial services companies based in Sydney
Australian companies established in 2008
National Australia Bank
Neobanks