Media release | Gadens congratulates Judo Bank on becoming Australia’s first challenger business bank

Gadens is pleased to have advised Judo Bank on its Australian Financial Services Licence (AFSL) which has been granted by ASIC contemporaneously with its authorised deposit-taking institution (ADI) licence from APRA.

The grant of these licences, as well as its Australian Credit Licence (ACL) which Gadens advised on a year ago, means Judo Bank is Australia’s first challenger business bank, purpose-built to support Australian business.

Built from the ground up by Joseph Healy, former head of NAB’s Business Lending division and David Hornery, former Executive General Manager of NAB’s Corporate and Specialised Banking division, Judo Bank has made a strong entry into the SME lending market since its establishment a year ago, attracting global investors and securing debt facilities from a number of key players within the financial services market including Goldman Sachs and Credit Suisse.

The successful banking and financial services licences will allow Judo Bank to fund loans to small and medium businesses with a mixture of both wholesale funding and deposits, creating alternative solutions for SMEs to secure business funding.

As a business bank dedicated to making it easier for Australian businesses to get the funding they need and the service they deserve, Judo Bank will have dedicated relationship banking specialists who take the time to understand customers businesses face-to-face and quickly approve loans to its business customers.

In addition to advising on Judo Bank’s AFSL and ACL, Gadens has advised Judo Bank on other vital aspects of establishing a business bank from scratch, including designing its suite of bespoke loan documents, the shortly to be launched deposit products offering and negotiating major service provider contracts. Gadens also continues to advise Judo Bank in respect to its general commercial, employment and information technology matters.

Deal area: Financial Services

Practice groups involved: Corporate Advisory

Key team members: Gadens Partner Stephen Moulton and Special Counsel, Caroline Ord led the team which included Natalie McCabe (Senior Associate).

Other firms involved: Ashurst (Acted for Judo Bank in respect to its ADI application, debt facilities and capital raising) and Ernst & Young (Consultants to Judo Bank).

Commenting on Gadens’ involvement in the deal, Caroline Ord says: “We are delighted to have acted for Judo Bank on this important milestone and look forward to supporting their future growth as they reshape the Australian SME business banking market.”