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Why do payday lenders ask for your online banking login?

Payday lenders need these details to help assess your application.

When you submit an application for a payday loan online, the majority of lenders will ask you for your Internet banking logins. This is a standard part of the process. The lender will use a third party to view your bank statements. This allows the lender to process your application quickly, so you can find out if you're approved sooner.

This guide will take you through why lenders ask for this information, what they do with your Internet banking logins and how your financial details are kept secure during the process.

Are you struggling financially?

If you're struggling financially and would like to speak to someone for free financial advice, information and assistance you can call the Financial Counsellors hotline on 1800 007 007 (open from 9:30am to 4pm, Monday to Friday). If you are suffering financial problems related to the coronavirus pandemic you may be eligible for additional support.

⚠️ Warning about Borrowing

payday-warningDo you really need a loan today?*

It can be expensive to borrow small amounts of money and borrowing may not solve your money problems.

Check your options before you borrow:

  • For information about other options for managing bills and debts, ring 1800 007 007 from anywhere in Australia to talk to a free and independent financial counsellor
  • Talk to your electricity, gas, phone or water provider to see if you can work out a payment plan
  • If you are on government benefits, ask if you can receive an advance from Centrelink: Phone: 13 17 94

The Government's MoneySmart website shows you how small amount loans work and suggests other options that may help you.

* This statement is an Australian Government requirement under the National Consumer Credit Protection Act 2009.

Why do lenders need my Internet banking details?

Payday lenders ask for your Internet banking details because it gives them a way to access your statements. This is 1 way payday lenders are able to process your payday loan application quickly. Instead of you emailing your bank statements from the past 3 months, you provide your logins and the lender can access them instantly.

Do payday lenders log in to my account to view my statements?

No. When you hand over your login details, the payday lender you're applying with will use a third-party company to access read-only copies of your statements. Popular companies that provide this service include Credit Sense and Yodlee. This is done almost instantly and, more importantly, securely. The payday lender will not have access to your account. It will only be able to see the information it needs to approve your application.

Man entering details for loan application

Is it safe to give my Internet banking details?

  • Payday lenders will not have access to your bank account and neither will the third-party service that facilitates the sending of read-only copies of your bank statements
  • Your Internet login details are not stored
  • The process is encrypted and secure

Do I have an alternative to sending my login details?

Most lenders will still let you send copies of your statements as PDFs through email to be verified manually. Keep in mind that this process usually lengthens the turnaround time by a few days. If you're concerned about handing over your Internet banking logins, find a lender that offers this option.

Compare payday loans


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1 - 6 of 6
Name Product Maximum loan amount Term of Loan Turnaround time Arrears Fee Costs Fortnightly Repayment (for $1500 Loan)
Sunshine Short Term Loans
9-20 weeks
30 minutes - conditions apply
20% of loan amount + 4% of loan amount each month
A small loan up to $2,500 that you repay over 9-20 weeks. Loans approved and funded in as little as 30 minutes. Centrelink must not be your primary income
Fair Go Finance Small Loan
3 to 12 months
24 to 48 hours
Establishment Fee of $60 – $400
A small loan between $500 and $2,000 that can be funded in 24 hours.
Nimble Small Loan
62 days to 9 months
1 hour - conditions apply
20% of loan amount + 4% of loan amount each month
A loan up to $2,000 with terms up to 62 days to 9 months. Centrelink cannot be your primary source of income.
Credit24 Short Term Loan
4 to 12 months
Same day - conditions apply
20% of loan amount establishment fee + 4% of loan amount monthly.
Credit24 offers this loan up to $2,000 and gives you 12 months to repay. Centrelink borrowers are considered as long as Centrelink payments are not more than 50% of income.
Credit24 Medium Term Loan (Good Credit)
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Within 24 hours
Establishment fee of $437 to $771
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  • Getting a loan while on Centrelink

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26 Responses

    Default Gravatar
    JosephJune 18, 2019

    When will the money reflect on my account?

      Default Gravatar
      AshJune 18, 2019

      Hi Joseph,

      Thank you for contacting Finder.

      The deposit of the approved loan amount to your bank account will depend on the Lender. Each Lender has their cut-off time after you have accepted and signed the terms for the loan. If you are within the cut-off, the money can be deposited to your account the next business day but it will depend on the verification of your bank on when will it reflect on your account. There are banks that requires 1-3 business days.

      I hope this helps.

      Please do not hesitate to reach out again to us if you have additional questions.


    Default Gravatar
    ScatzSeptember 9, 2018

    I’m wondering why many of the different lenders out there will not allow applicants to send bank statements via email?

      JhezelynSeptember 11, 2018Finder

      Hello Scatz,

      Thank you for your comment.

      There are lenders that require the original print, and not online versions, of the statements. This is for documentation and security purposes. When something happens to the database, these documents in a paper form are used for back up.

      Should you wish to have real-time answers to your questions, try our chat box on the lower right corner of our page.


    Default Gravatar
    AnonymousMarch 11, 2018

    Safety net asked for my pin and online banking password is this safe?

      JhezelynMarch 11, 2018Finder

      Hi there,

      Thank you for your comment.

      Generally, lenders will request your bank account details, your account number, and your routing number, for a number of reasons. One reason is to verify that you’re eligible since most loans require you to have an operating bank account to qualify. Nevertheless, please know that they will not have access to your bank account and neither will the third-party service like Finder that facilitates the sending of read-only copies of your bank statements. Lenders will also not store your login details and generally, this process is encrypted and secure through their site. 

      The article above on why do payday lenders ask for your internet banking logins will provide further explanation on this.


    Default Gravatar
    AnthonyJuly 28, 2017

    This loan company just asked me for my online banking log in info and said that is how they are going to get me the money is this a scam

      HaroldJuly 28, 2017Finder

      Hi Anthony,

      Thank you for your inquiry.

      Generally, Payday lenders ask for your Internet banking details because it gives them a way to access your statements. This is one way payday lenders are able to process your application much faster than banks. Instead of you emailing your bank statements from the past three months, you provide your logins and the lender can access them instantly.

      I hope this information has helped.


    Default Gravatar
    GillianJuly 22, 2017

    Hi, I am applying for a loan from Progressive Money, and they want my online banking details, via Account Score, to read my bank statements.
    Having read posts in here, it sounds okay, but I spoke with my bank (Santander) who advised not to do this, said it was a scam. Do you know of banks are aware of Account Score etc. I feel worried about giving the account details after speaking with my bank

      Default Gravatar
      JonathanJuly 22, 2017

      Hi Gillian,

      I did a company search on the ASIC website and these are what I found out about Progressive Money:

      • ACN: 160 792 110
      • Registration date: 16/10/2012
      • Next review date: 16/10/2017
      • Status: Registered
      • Type: Australian Proprietary Company, Limited By Shares
      • Locality of registered office: PORT NOARLUNGA SA 5167
      • Regulator: Australian Securities & Investments Commission

      You may contact ASIC if you have other concerns about the legitimacy of their business transactions.

      If I may add, if you’re able to confirm that you wish to continue with this loan application, you may ask your lender to allow you to send printed statements, if that makes you feel more secure.

      Hope this helps.


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