AUSTRALIA’S FIRST SME CHALLENGER BANK
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JUDO BANK EXPLAINS WHY IT DOESN’T DO DIGITAL TRANSFORMATION WRITTEN BY
SOPHIE CHAPMAN PRODUCED BY
NATHAN HOLMES
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JUDO BANK
As Judo Bank continues to expand its business, the company’s CIO tells us how it is connecting with its customers
J
udo Bank was established to serve small and medium enterprises (SMEs) lending needs, and has recently been granted a
full banking licence that will allow it launch full 04
deposit-taking capabilities. Alex Twigg, co-founder and Chief Information Officer, helped launch the business as the first challenger business bank in Australia. The company “Like most start-up businesses, Judo started as wishful idea that we’d discuss informally —I don’t think any of the founders imagined how fast it would take hold,” reveals Mr Twigg. “It’s been a rollercoaster ride that has exceeded all of our expectations. We initially raised around AU$20m worth of seed capital to get the business launched, then followed that with an AU$120m Series A funding round -the second largest pre-revenue raising for a start-up in Australian corporate history.” Judo Bank’s ‘judo strategy’ outmaneuvers the incumbent banks by using the nimbleness of its
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JUDO BANK
modern technology to rejuvenate the
technology mindset. The bank uses a
dying craft of artisan business lending.
clear technology strategy, with nine
Judo Bank has built a system that is
simple principles to drive how they will
enables traditional relationship
operate the entire technology environ-
banking backed by modern, legacy-
ment. The firm’s nine principles include
free technology, processes and
not owning IT, being open for business
systems. Lending decisions are based
with the adaptable Open Architecture
on the performance of the business;
and Open Platform, and ensuring its
not just the value of the available
technology is invisible to the consumer.
security, or “collateral” that the
Judo also ensures it is always prepared
incumbent banks concentrate on.
to embrace change and evolve
When the company was founded in 2016, it was established with a digital 06
its security operations, as well as prioritising all it’s clients’ data privacy.
“This is the best system I’ve ever used, only having one system for everything is a breath of fresh air, meaning I’m much more efficient and more importantly can spend more time with my customers” — Ben Tuszynski, 14 years business banking experience working for major banks both in Australia and the UK
CLICK TO WATCH : ‘JUDO BANK - TESTIMONIAL’ 07 The company will also look to the cloud
architecture into which all of our
first, will be identity-led, and will take a
applications can run in any cloud, and
holistic approach to its solutions whilst
whichever is the primary cloud, we
always considering the business’s
have a backup in the other cloud,”
evolution.
states Mr Twigg.
“We don’t do digital transformation
Judo uses Microsoft Azure and
– we do digital. We have built an
Amazon Web Services as its cloud
architecture that is entirely focused on
providers and has created a role-
a digital business model that enables
based, rule-focused, access manage-
human relationships. There is nothing
ment infrastructure using Microsoft
to transform, we started with a blank
Azure Active Directory to enable a
sheet of paper and take a do-it-once,
federated single sign-on environment
do-it-right approach.” Mr Twigg
for customers and staff. “Digital Identity
notes.“We have a multi-cloud ap-
is very important in the ecosystem and
proach, and we have created an
is key to having that role-based access w w w.j ud o. b a n k
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THE BEST OF TECHNOLOGY ENABLING THE NEW SME EXPECTATION Small and medium-sized enterprises (SMEs) are the backbone of the economy in Asia and Australia. In fact, in Australia, the SME sector has created over 5 million jobs and employs around 40% of the nation’s workforce. SMEs account for 33% of the country’s GDP and pay over 12% of total company tax revenue. SMEs are essential for Australia’s future stability and growth, therefore, should be a priority for the banks today. However, the SME sector is the most underserved market in the region, often regarded as too expensive and risky to serve. For banks seeking to target this outstanding opportunity, it’s important to remember SMEs are a very diverse demographic. They range enormously in scale and ambition, from fast growth tech start-ups to stable, medium-sized manufacturing businesses. In order to serve the needs of the SME sector, financial institutions need to invest in technology platforms and digital channels which provide services that help SMEs better manage their operations. Crucially, the changes needed to deliver these goals must also be initiated across all levels in the organisation - structural, operational and technological. One financial institution taking this challenge head-on is challenger bank, Judo Bank. Shaking up the status quo, the bank has zeroed in on the SME segment, forging meaningful relationships with companies with a turnover of up to AUD$20mn. Judo CIO, Alex Twigg, summarised the firm’s core ethos by noting that: "Judo’s mission is to bring back the craft of relationship banking, powered by the best of modern technology.” To make this vision a reality, Judo teamed up with the world’s leader in banking software, Temenos, who partner with banks and other financial institutions to transform their businesses and stay ahead of a changing marketplace. Over 3,000 firms across the globe, including 41 of the top 50 banks, rely on Temenos to process both the daily transactions and client interactions of more than 500 million banking customers. Temenos offers cloud-native, cloud-agnostic front office and core banking, payments, fund management and wealth management software products, enabling banks to deliver both consistent, frictionless customer journeys and gain operational excellence.
Judo has leveraged Temenos’ global expertise and 25 years of experience in providing proven, packaged, upgradeable software, selecting Temenos T24 Transact, Analytics, Financial Crime Mitigation and Channels – a module of Temenos Infinity – running on Temenos Cloud. By leveraging advanced API-first architecture, Temenos T24 Transact will integrate with Judo’s existing systems via its zero-trust-network and identity management system, allowing third-parties to connect easily and creating an open banking ecosystem. As a challenger to the market, Judo was looking for a strategic technology partner that was well-known and established in Australia. Moreover, the technology needed to be able to support Judo in the long-term, and have a full set of products and features, that would enable it to get to market very quickly. Enabling customers with self-service apps whilst still maintaining an appreciation for human contact, Judo is transcending channels and touch-points to create a unique journey based on customer needs. Twigg outlines that the company’s partnership with Temenos has helped to make this vision a reality.
“
With the big banks’ shift to industrialisation and centralisation, SMEs have lost the human interaction and tailored service that they so deserve and crave. Judo’s mission is to bring back the craft of relationship banking, powered by the best of modern technology. With Temenos’ commitment to providing core banking as-a-service, we can continue to focus on empowering our customers, the businesses that are the backbone of the Australian economy.” ALEX TWIGG, COFOUNDER AND CIO, JUDO BANK
Talk to one of our experts w w w.j ud o. b a n k
JUDO BANK
10 and privilege-based security model.
have the benefit of being able to use
Because of our approach we can
the modern security platforms
simply bolt on new products and
available in the cloud, you can probably
services, as long as they can support
secure your data better than you can in
open standards.”
a significantly more costly on-premises
Mr Twigg argues that Judo leverag-
solution with a very blunt firewall round
ing the global cloud providers scale
the outside,” adds Mr Twigg. “It’s a
has been critical to the company’s
different model that needs a very
world class security infrastructure. The
different mindset to think about how to
CIO argues that most large banks
secure data in the cloud.”
around the world would not be able to
Headquartered in Melbourne with
compete with the investment Amazon
offices in Sydney and Brisbane the
and Microsoft are channeling into
company is expanding quickly enabled
security infrastructure. “If you are
by technology. As the firm expands, its
architecting from scratch, and you
relationships with its customers
strengthen. “I find it so energizing to
to create the-best-way, for people to do
be able to just drive straight into writing
something they’d rather avoid. It’s
loans with systems that are so logical
frustrating that as an industry we spend
and straightforward after years spent
so much time and effort trying to make
time wasting with outdated, clunky,
customers do what we want them to do,
illogical dinosaur era systems,” claims
rather than actually trying to serve
Rebecca Evans, a career business
customers and helping them do what
banker passionate about making
they want to do. That however is the
a tangible difference to her clients
result of the industrialization of our
businesses.
industry through cost-out pressures.”
Mr Twigg is aware of the reluctance
In order to appeal more successfully
of customers within his industry to use
to business owners, Judo aims to make
banking services. “Banking is boring,” he
the advanced technology it uses
says candidly. “Ironically, as an industry,
invisible. Mr Twigg argues that “by
we spend billions of dollars a year, trying
making the technology a product of
E XE CU T I VE PRO FI LE
Alex Twigg, Co-Founder & CIO, Judo Bank Former UBank CEO, Eftpos Australia NED and Board Advisor to several Australian Fintechs, Fellow of FINSIA, ACID graduate, Alex was a global pioneer of technology innovation and is now a member of a very small club, being onto his 3rd successful start-up bank, Egg, UBank, and Judo Bank, an SME focused bank designed to blend the best of traditional relationship banking with the very best technology.
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the relationship, rather than the driver
all data flows from the front to the back.
of the interaction, our customers and
We would automate data entry
bankers can get on a do what they’re
wherever humanly possible, and if we
best at doing.” “Bankers can build
couldn’t automate it, we would
relationships and customers can build
automatically quality check it. So a
their businesses,” he explains. “This is
banker should be able to visit a
why we say that Judo is not a technol-
customer’s place of business, review
ogy driven fintech, rather a people
the books, agree a deal, complete
enabled bank.”
everything on their iphone and send
The technologies that Judo uses enable efficiency. “A banker in one of
the docs to the customer before leaving the car park.”
the Australian incumbent banks would
Judo has also established a
have to at least log into, and probably
real-time dashboard process that
double-key information into, some-
allows customers, bankers and
where between 15 and 22 different
brokers to all collaborate on a deal.
systems, which has horrible customer
Each participant can contact each
service and efficiency implications. We
other and be able to see different
set out to have one ecosystem where
levels of data depending on who they
“ If you’re game enough to have the idea of starting your own bank, then you have to be prepared to face new challenges every day” — Alex Twigg, CIO, Judo Capital
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JUDO BANK
are and what access privileges they have. “It means that if a broker sends a
at
io
ment agencies for validity, and auto14
nsh
c ip Oriented Te
ma
te
d
Selfcontained Digital Ecosystem
We are OPEN for Business
hn
ol
o
Evolving/ Responsive Security
Identity Led
system will OCR that driving license, automatically check it against govern-
Data Differentiation
L e a n A u to
in
R
el
Cloud First
gy
Desi gn Pr in ci pl
nk
Everything as a Service
w h e re
Design with the End in MInd
does, they can send a copy of their driving license, for example. The
Ba
A ny
that message before the broker
ses
m
customer simultaneously,” Twigg explains. “If the customer sees
es
g
f ro
to both the broker and the
Made to Change
les ncip Pri
information, they can message out
Te ch
Be Invisible
Pr oc
on it and needs another piece of
We Don’t Own IT
gy lo no
deal to Judo, when the banker works
es
Private & Confidential
Sec
u rit y P ri n c i p l e s
matically use it as part of the customer identity validation process. At every
Amazon, Judo Bank has achieved
step of the way, all parties are kept fully
significant advances by partnering with
informed of the progress of the deal..
a small group of likeminded, customer
That’s probably a really tangible
focused businesses, like Over The
example of the way we’ve tried to make
Wire, Itoc, JB HiFi Solutions, BankSight,
the technology invisible.”
Realtime, Temenos, Vermeg, GTreas-
As well as working closely with
ury , Domo, RapidID, TSS, RIA Advisory
global tech companies Microsoft and
and Unifii, who they bring together as a team, all actively sharing information and collaborating to optimize Judo’s offering. Working with Australian telco Over the Wire, Judo Bank has implemented a full IP telephony system with CRM integration onto every banker’s mobile phone and
THE 9 PRINCIPLES OF JUDO BANK TECH
1 We do not own IT: We are “Service First� and as a green field we do not want to deal with the overhead of owning and maintaining on premises technology. 2W e are open for business: Our Open Architecture and Open Platform will be extensible and adaptable, enabling us to easily change the services we consume and adopt new ones with limited impact. 3 B e invisible: Technology is a natural part of our working day, enabling and automating, not complicating customer service. 4 M ade to change: We recognise that things change and embrace it by building a platform that can adapt to change by enabling the on-boarding of new services and new technologies as they become available. 5 E volving and responsive security: The platform is
designed with security and privacy as a fundamental functional requirement of every component, not as a perimeter fence. 6P rivate and confidential: We will treat all data the same by having the same (highest possible) privacy and confidentiality controls across all services. 7 D esigned with the end in mind: Our solutions will be designed considering the evolution of the business and the IT environment from an holistic and strategic perspective. 8 I dentity led: Identity is at the centre of our approach, with identity controlling access to information and processes at every point in the architecture. 9C loud first: When choosing and designing Technical Services we look to Cloud based Services before others
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RIA A DV ISORY
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OUR SITE
CONTACT
“Unlike most systems I have used before, that blocked me, BankSight is intuitive and flexible, helping me to get on with my job and deliver to my customers” — Simon Hardiman, 15 years business banking experience working for major banks both in Australia and the UK enabled Judo to become one of the first
Unifii,BankSight and RapidID have
banks in the world to establish a
worked closely together to provide a
zero-trust-network (ZTN), the founda-
full CRM, onboardingand commercial
tion of its entirely SaaS operating model.
loan origination system supported by a
On top of the ZTN, Judo Bank has
banker App that facilitates true
worked extensively with Itoc, it’s cloud
customer relationships. “The Contact
ops partner and TSS our security
App, is an interesting piece of technol-
partner to develop a single role-based
ogy that effectively automates the
access control and monitoring platform
capturing of compliance records for
using Microsoft Active Directory, B2B
any customer banker communication,
(Business to Business) and B2C
irrespective of the channel they use.
(Business to Consumer) products into
Bringing together voice, email and
which all the SaaS providers ‘plug-in’ to
messaging into a single App, ensuring
provide a single sign-on for both
it can all be instantly retrieved for
customers and staff.
customer service or compliance
Temenos is providing the core
needs,” Twigg said. Domo was one of
banking platform alongside Vermeg
the very first partnerships developed
and GTreasury, who are providing
by Judo Bank and provides near
regulatory reporting and treasury
real-time insight into any element of
capabilities as a service respectively.
the Judo operation, available to w w w.j ud o. b a n k
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JUDO BANK
SOFTWARE EXCELLENCE FOR LEADERS IN FINANCE
TO ACCELERATE DIGITAL TRANSFORMATION
INSURANCE
BANKING&WEALTH
DIGITAL TRANSFORMATION
80
Approximate number of employees
2016
Year founded
HQ
Melbourne Australia
“It is an absolute privilege to work with the Judo technology team, they are the best of the best and make magic happen every day” — Alex Twigg, CIO, Judo Capital
everyone in the company, from their desktop on smart phone. It was also the pre-curser to Judo Data Achieve Vault Environment (DAVE) which is an event based data lake, built in AWS, that captures real-time data and telemetry from every part of the Judo ecosystem and will become the foundation of Judo’s machine learning capability. As the bank continues to develop, Mr Twigg reveals the challenges Judo Bank is yet to face: “If you’re game enough to have the idea of starting your own bank, then you have to be prepared
Graham Dickens, Chief Technology Officer
Glen Appleby, Chief Information Security Officer
to face new challenges that you never expected, every day. It’s a big mountain to climb, but it’s a lot of fun. Our success will come down to the satisfaction of our customers and our constant focus on trying to get that right. The reason Judo Bank understands small business better
Andreas Piefke, Niko Bielovich, Chief Data & Analytics Chief Service Officer Management Officer
than anyone else is because it started as a small business. It is an absolute privilege to work with the Judo technology team, they are the best of the best and make magic happen every day.”
Jeff Nel, Chief Platform Officer
Hannah Borash, Chief Business Intelligence Officer w w w.j ud o. b a n k
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Judo Bank Level 3, 40 City Road Southbank, Melbourne Victoria 3006 Australia T +61 390813110 www.judo.bank