Teachers Mutual Bank launches the neobank “Winter”

Teachers Mutual Bank has launched its own neo-bank called Winter, which is the first neo created by a client-owned bank.

Teachers Mutual CEO Steve James said the launch of Winter was “an exciting development” in the neobank space.

“We combine the best of new banking technology with the financial security of a $ 9 billion balance sheet and a proven ethical business model,” he said.

“We are proud to offer this unique service to some of our most valued members of the community, essential and frontline workers, by supporting their economies with our strong capital and liquidity. “

The first product to be launched would be a savings account with “attractive” interest rates, with mortgage loans through a brokerage channel scheduled to launch in the coming months.

The savings account has a base interest rate of 0.50% pa, with a bonus rate of 0.25% if customers make a deposit and do not make more than one withdrawal per month.

Compared to other banks – especially neos – this is slightly lower than some of the more profitable accounts, albeit with less onerous criteria for hitting the bonus rate.

For a limited time, the account will also offer 1% cash back on essential purchases such as groceries and public transportation.

Carolyn Murphy and Steve James of Teachers Mutual Bank. Image provided.

Digital banking director Carolyn Murphy will lead the outfit, who said the launch of Winter further solidifies Teachers Mutual’s push to go digital, with the neobank targeting “essential” workers.

“The pandemic has shown us how important high-quality digital services are to people working in essential services across the country, in cities and regional areas, day and night,” she said. declared.

Teachers Mutual Bank is one of the largest customer-owned banks in Australia, with a balance sheet of $ 9 billion and 210,000 members.

It also owns Firefighters Mutual Bank, Health Professional Bank and UniBank.

Winter’s launch follows the rebranding of the AUC as “Great Southern Bank” earlier in June.

For neobanks, 2020 and early 2021 proved difficult for some, with Xinja closing and returning customer deposits; 86,400 in the process of being bought out by NAB; and Volt still has its products in beta.

Photo by Alexander Mils on Unsplash