A digital bank is one that operates mostly online with no (or limited) physical bank branches for customers to visit. However, these days you could argue that most banks are digital banks as they all offer internet banking and mobile banking apps.
A digital bank is a fairly loose term; the correct industry name for the banks that operate 100% digitally is a neobank. There are only a few true neobanks in Australia.
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A neobank (or commonly referred to as a digital bank) operates entirely digitally, usually from an app, rather than from a physical branch or office.
A neobank is a completely digital bank that doesn't use any existing legacy systems to operate. This means the bank doesn't use any physical infrastructure or digital operating systems that are already being used by existing financial institutions in Australia. The technology used by these neobanks is developed from scratch. It's a bank that operates via an app on your phone.
Around half of Australians (46%) use Internet banking to track their spending, followed by 34% who use banking apps and 9% who use budgeting apps.
Around the year 2019 we saw a big increase in the number of new digital banks launching and trying to get banking licenses. However, most of these have since closed down or been acquired by a larger, traditional bank.
Many people refer to ING, ME and ubank as digital banks because they don't have any physical branches - which is true. However, these banks aren't neobanks in the traditional sense because they rely on existing banking infrastructure.
That's not to say that these banks don't offer great digital services, because they do. ING has one of the most popular banking apps and ubank is known for its easy-to-use app with spending insights too.
The 2025 Finder Awards found that online bank Up had the best banking app.
Up bank has been named the most loved banking app this year by customers. With digital tools and features to help you budget and track your spending, customers scored the brand 4.76 out of 5 for this category.
Up bank has been named the most loved banking app this year by customers. With digital tools and features to help you budget and track your spending, customers scored the brand 4.76 out of 5 for this category.
"Digital banks are really not that different to other banks, except they naturally make things easier to resolve online, their apps are more user-friendly, and they even have more flexibility to add fun little perks! I started using the Up app after a colleague told me about its Friday happy hour feature! It was super easy to sign up. I didn't need any complicated ways to prove my ID and it was done in seconds, all over a pint. We both got a $10 referral bonus, but the perks didn't end there. Using Up's happy hour feature got me a $3 cashback on a $10 drink. If you're more of a morning coffee drinker, you might also appreciate the Perk-Up offer where Up randomly chooses to reimburse customers up to $6.50 when you've spent at a cafe between 7am and 11am. "
Neobanks need to have the same banking licences and approvals as existing Australian banks before they’re able to offer products and services to consumers. These new banks are regulated by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investment Commission (ASIC) in a similar way to how existing banks are regulated.
Your deposit of up to $250,000 with an Australian authorised deposit-taking institution (ADI) is protected by the Australian government, under the financial claims scheme. This means if something were to happen to the bank, your money (up to this amount) would be safe.
Mobile-only banks are designed to be accessed from an app on your smartphone. Unlike traditional banks, there are no bank branches and unlike online bank there's no option of Internet banking via a desktop. While mobile-only banks and online banks seem similar, there are a few key differences that set them apart.
Pros
Cons
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Is there a Bank called : DIGITAL Bank of Australia with a Branch at Mac Arther Mall, 255 Queen Street, Brisbane City QLD 4000 Australia.
I need to contact a Mr Ottawa Douglas rather urgently. I tryed emailing and Phone calls but not able to get through.
I am calling from Papua New Guinea
and My name is David Willies Kiwa.
Any assistance is very much appreciated.
Thanks and have a happy day.
Hi David,
The address you’ve supplied is the address of NAB, a big 4 Bank.
We’re not aware of a Digital Bank of Australia and couldn’t find any information on Google.
If you’re concerned you might have been scammed, you can lodge a complaint and get support here: https://www.scamwatch.gov.au/
Best of luck.
I would like to reach out to you to find out if there is a saturation point for digital banking. Please advice
Kind regards
Hi Gladys,
Thank you for reaching out to Finder.
Yes, there may be a saturation point for digital banking but this is not something to be worried about in Australia. The saturation point for neobanking is currrently seen in the US where new app growth has slowed, business mobile has failed to grow as expected, person-to-person growth is low and debit card controls are gaining popularity.
Hope this helped.
Kind Regards,
Mai