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This article is about the Australian bank. For the South African bank, see Ubank.

UBank
Company typeDivision of National Australia Bank
IndustryFinancial services
Founded1 October 2008
HeadquartersSydney, Australia
Key people
ProductsBanking, financial and related services
Websiteubank.com.au

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.[1]

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.[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]

UBank was underpinned with the "Nextgen" technology provided by Oracle. After spending approximately $AUD2B, it was written off.[citation needed]

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] UBank has been acknowledged as the driver of NAB's fast growth in deposit market share compared to other major banks.[10][11]

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.[12]

In July 2010, Alex Twigg was named as replacement for founder Gerd Schenkel.[13][14] In May 2012, Ubank scored 93.2% in a Roy Morgan customer satisfaction survey.[15]

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".[16] This compares to $18.5 billion in deposits held by ING Direct as of September 2012.[17]

As of October 2015, UBank had $15.7 billion of customer deposits and $3.6b of mortgages.[18]

In March 2020, Philippa Watson was appointed CEO of UBank.[19]

Acquisition of :86 400

A neobank[20] founded by Anthony Thomson[21] and Robert Bell[22] and majority owned by payments company Cuscal,[23][24] 86 400 gained a licence to operate as an authorised deposit-taking institution in 2019.[25] In January 2021, NAB announced plans to acquire it for $220 million and merge it with UBank.[26] This was approved by the regulator, despite concerns about reducing competition.[27] The transaction was completed in May 2021, with the :86 400 brand terminated a year later and incorporated into the UBank branding.[28]

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.[29]

In August 2009, UBank launched a new online savings account ("USaver") that was reported to differentiate through its online application process.[30][31]

In February 2011, UBank launched its first home loan product (dubbed "UHomeloan").[32]

In August 2013 Ubank launched USaver Ultra transaction account.[15][33]

In August 2020 UBank ceased offering new accounts and term deposits to Self Managed Superannuation Fund (SMSF).[34][35] During July 2022 UBank is terminating existing SMSF accounts, with an offer to transfer funds to existing NAB products.[36]

Awards

  • In December 2009, UBank's USaver online savings account was awarded Money Magazine's "Best of the Best" award.[37]
  • In October 2011 UBank won the BAI Financial Global Product Innovation Award for its refinance mortgage UHomeloan.[38]
  • In the 2012 Australian Lending Awards UBank was named Best Online Operator[39]
  • November 2012 Ubank's people like you app wins best in show at Finovate Asia [40]
  • 2013 AFR Smart Investor Blue Ribbon Direct Institution of the Year [41]

Branding and marketing

Logo of UBank at launch in 2008

UBank was cited as an example of effective use of nontraditional marketing such as social media,[42] but also uses traditional marketing such as print[43] 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.[44]

UBank also launched a series of YouTube videos called UBank Moneybox, meant to educate and entertain.[45] In February 2016 UBank launched a new visual identity, designed to reposition the bank as a "utility".[46]

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.[28]

Controversy

In 2016, UBank launched a controversial advertising campaign using terminally ill people which garnered many complaints.[47]

The company defended the campaign as being "disruptive".[48]

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."[49]

This innovative piece of work was deemed to pose a potential threat to mortgage brokers and their businesses.[50] 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.[51]

Customers blocked from accessing their own money

In 2022 UBank notified customers with legacy accounts by email that they would have their BSB and account numbers changed at an unspecified future time. This change was then made without adquate notice being provided, resulting in many customers being locked out of their accounts and unable to access their own money. UBank's customer service response was completely inadequate, leading to significant psychological distress to customers.[52]

Further harm and distress was caused to customers who were travelling outside Australia, who discovered they could not access the UBank app or website as it had been geo-restricted, without this ever being officially announced as a policy.[53]

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. 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. ^ "NAB deposit tactics show promise". The Sheet. 1 December 2009.
  11. ^ "Big two grab largest slice of credit". Australian Financial Review. 2 December 2009.
  12. ^ "Can NAB's Ubank emulate Jetstar?". Business Spectator. 7 December 2009.
  13. ^ http://eastandpartners.asia/publications/banking-news/new-gm-announced-for-ubank [dead link]
  14. ^ "UBank names Alex Twigg GM". 8 July 2010.
  15. ^ a b "UBank news".
  16. ^ "KGB: NAB's Cameron Clyne". Business Spectator. 1 November 2012. Retrieved 14 July 2013.
  17. ^ http://www.apra.gov.au/adi/Publications/Documents/MBS%20September%202012.pdf [dead link]
  18. ^ "Financial results - NAB". nab.com.au. Retrieved 26 September 2016.
  19. ^ "Philippa Watson, CEO".
  20. ^ Kane, Annie (31 May 2021). "86 400 launches direct offering". www.theadviser.com.au. Retrieved 1 November 2021.
  21. ^ 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.
  22. ^ Birmingham, Andrew (12 October 2021). "Update: At 86 400, founder Robert Bell stepping down, Philippa Watson steps up". Digital Nation. Retrieved 3 November 2021.
  23. ^ 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.
  24. ^ Pike, Rebecca. "New bank launched in Sydney". www.brokernews.com.au. Retrieved 4 November 2021.
  25. ^ 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.
  26. ^ 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.
  27. ^ '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.
  28. ^ a b "Customers app-laud new ubank digital look and feel". 17 May 2022.
  29. ^ "The Bank Channel: NAB launches Ubank". The Bank Channel. 30 September 2008. Retrieved 29 October 2008.
  30. ^ "NAB pioneers 'five-minute' online bank account". IT Wire. 6 August 2009. Archived from the original on 9 August 2009. Retrieved 14 February 2016.
  31. ^ "UBank launches on-line savings account with unbeaten interest rate". NAB. 6 August 2009. Archived from the original on 22 July 2012. Retrieved 14 February 2016.
  32. ^ Taylor, Peter (23 February 2011). "NAB fires new weapon in bank wars". Herald Sun. Retrieved 17 November 2011.
  33. ^ http://www.abandf.com.au/technology/ubank-targets-deposits-with-new-account/
  34. ^ "Best Savings Accounts, UBank USave SMSF".
  35. ^ "Information on SMSFs for existing customers - New SMSFs are no longer available".
  36. ^ "UBank Transfer".
  37. ^ "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.
  38. ^ "Innovating for Customers".
  39. ^ "Award Winners". Australian Lending Awards. Retrieved 14 July 2013.
  40. ^ "UBank Archives".
  41. ^ http://www.afr.com/it-pro/blue-ribbon-awards-the-winners-20130822-k0id1 [dead link]
  42. ^ "NAB goes online to reach people allergic to banks". Sydney Morning Herald. 23 April 2009.
  43. ^ "See more executions from UBank's USaver press campaign". Newspaper works. 20 September 2009.
  44. ^ "UBank USaver Savings is the new spending - YouTube". m.youtube.com. Retrieved 26 September 2016.
  45. ^ "Direct Banking Strategy Gerd Schenkel". slideshare.net. 25 January 2010. Retrieved 26 September 2016.
  46. ^ "Rebrand positions UBank as the utilitarian choice | Marketing Magazine". marketingmag.com.au. 2 February 2016. Retrieved 26 September 2016.
  47. ^ "UBank faces ad ban after complaints issued to watchdog - AdNews".
  48. ^ "UBank CMO stands by campaign - 'We need it to be disruptive' - AdNews".
  49. ^ "Introducing Mia: A new face in the home loan space". ubank.com.au. Retrieved 11 February 2019.
  50. ^ "UBank launches world's first digital human home loan application assistant". savings.com.au. Retrieved 11 February 2019.
  51. ^ "What consumers think of mortgage brokers". savings.com.au. Retrieved 7 February 2019.
  52. ^ "UBank Product Review". Retrieved 27 November 2022.
  53. ^ "UBank Overseas Access Blocked Reddit". Retrieved 27 November 2022.
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