The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.
AMP Group has announced its plans to launch a digital bank designed for sole traders and small businesses, expected to be operational by early 2025.
This venture, aimed at disrupting a ready market, will see AMP partner with Engine by Starling, a UK-based neobank subsidiary, to leverage its modular platform for a scalable and robust infrastructure.
To bring this innovative offering to life, AMP has partnered with Engine by Starling, a subsidiary of the renowned UK-based neobank Starling. Engine's modularized platform will serve as the foundation for AMP's new digital bank, providing a robust and scalable infrastructure.
AMP Bank's CEO, Sean O'Malley, has confirmed that while the digital bank will fall under the existing banking arm of AMP, it will operate as a distinct and independent entity, separated from the rest of the division.
The primary focus of this new digital bank will be on serving sole traders, micro-businesses, and small businesses with 1 to 20 employees. Transaction and savings accounts will be the core offerings initially, with lending services potentially being added in the future. AMP recognizes the importance of delivering a seamless banking experience, complete with spending insights, real-time payments, debit cards, and seamless integration with existing accounting software used by SMEs.
"Our vision for the new bank is to provide small business owners with tailored functionality and features to manage their finances on-the-go from their mobile phones," said AMP in a statement.
The digital bank's target audience extends beyond SME customers, as AMP aims to capture retail consumers by specifically catering to their transactional needs.
AMP has allocated approximately $60 million over the fiscal years 2024-2025 for the launch of this new banking offering, with a majority of the funding being capitalized. Blair Vernon, AMP's Chief Financial Officer, clarified that this funding will be repurposed from the existing business simplification and growth program, ensuring it aligns with the company's current cost targets.
Apart from expanding AMP's product portfolio, the establishment of this digital bank opens up new opportunities for funding and diversified revenue streams. AMP's CEO, Alexis George, recognizes the need to address the relatively low transaction balances in their current mix, and this new venture will help fulfill that objective.
Why Starling?
After evaluating nearly 20 Banking as a Service (BaaS) offerings both internationally and locally, AMP selected Starling's 'Engine' platform as the optimal choice. O'Malley highlighted Engine's "deep core" structure as a key differentiator, consolidating the app experience, staff experience, and customer experience into a cohesive and modularized platform.
AMP also recognized the success of Starling as a digital-only consumer bank in the UK, where it has gained approximately 3.6 million accounts and a substantial 9.4% market share in business banking.
Engine's integrated and seamless human support function, including a 24/7 contact center, was another factor that influenced AMP's decision. It is anticipated that this support system will also be implemented for AMP's digital bank.
Over the next 12 months, AMP will commence the build and deployment phase of the new platform. This process will involve market localization and integration with Australia's fast payment rails. Just like Starling's approach, AMP's integration will be gradual and progressive.
A Focus on SMEs: Why is AMP Expanding into this Area?
Australia's SME banking market offers significant opportunities for a new entrant, according to Alexis George, AMP's Chief Executive Officer. Despite experiencing rapid growth, SMEs, including approximately 2.6 million businesses, have historically been underserved by banks.
In Alex George's words, "Ninety-nine per cent of businesses in Australia are small, with most operating in the small trader and micro segments. AMP is well-positioned to capitalize on this underserved market, as many SMEs are dissatisfied with the current offerings in the market."
She further explains, "What they are seeking is a connected, simple, digital-first offering - and we are bringing the features and functionality that the market is yearning for."
By targeting SMEs, AMP's deposit book is also expected to benefit. On average, small traders, micro-businesses, and SMEs hold approximately $47,000 in their accounts, with larger SMEs holding around $168,000. As of June 2021, the deposit balances from this segment totaled nearly $220 billion.
O'Malley has set ambitious goals, projecting that AMP's digital bank could potentially capture between three to six percent of the Australian SME banking market with time.
Please Note: We do not endorse any specific products or companies. Some content is sourced from third parties, including press releases, and may not be independently verified for accuracy or completeness.
Green car finance is becoming a more visible part of Australia’s car loan market, with lenders continuing to promote discounted rates for eligible electric, hybrid and other lower-emission vehicles. For buyers weighing up a new EV, plug-in hybrid or fuel-efficient model, the headline appeal is obvious: a lower rate can reduce the cost of borrowing and may make a higher purchase price feel more manageable. - read more
Australia’s new-car market is showing more signs of competition, with recent industry updates pointing to sharper drive-away offers, run-out campaigns and finance-led promotions across selected brands. For buyers, that can make the showroom feel more attractive than it did during the tight-supply years, when wait times and limited stock gave sellers more pricing power. - read more
Australia's used-car market appears to be moving into a more balanced phase, with recent industry updates pointing to improved vehicle availability and less pressure on prices across some mainstream segments. That is welcome news for buyers who spent the past few years dealing with limited stock, long new-car wait times and unusually firm second-hand values. - read more
The Reserve Bank of Australia's latest decision to leave the cash rate unchanged keeps car buyers in a familiar holding pattern: borrowing costs are not rising sharply, but they are not easing quickly either. For households planning a new or used vehicle purchase, that means the focus should remain on preparation, comparison and affordability rather than waiting for a dramatic rate shift. - read more
Australia’s car finance market is sending buyers two important messages at once. Recent July rate snapshots show some secured car loans advertised from around the mid-five per cent range for strong-credit borrowers, suggesting competition is still alive for well-prepared applicants. At the same time, ASIC’s 24 June 2026 review of motor vehicle finance has put the spotlight on fees, third-party sales channels and borrower outcomes. - read more
Self-employed borrowers can apply for car finance in Australia, but lenders may assess income differently from PAYG employees. This guide explains common document requirements, low doc options, ABN car finance considerations and practical preparation steps. - read more
Balloon payments and residual values can make car loan repayments look more manageable, but they also create an important end-of-term obligation. This guide explains how they work in Australia, how they affect total borrowing costs, and what to check before choosing this type of loan structure. - read more
Finding an affordable car finance option can make the dream of owning a vehicle a tangible reality for many Australians. It’s about understanding the intricacies of the loan market, interest rates, and finding a plan that aligns with your financial prospects and constraints. In a society built on the convenience of mobility, securing a car that meets both your needs and your budget is essential. - read more
Car loan refinancing means replacing your existing car loan with a new loan, usually to change the interest rate, repayment amount, lender or loan term. For Australian borrowers, it can be useful when market rates, credit history, income, expenses or loan needs have changed, but the potential benefits should always be weighed against fees, break costs and the total cost over the life of the loan. - read more
When planning to take out a car loan, it is crucial to start by understanding your budget. Consider how much you can realistically afford to borrow without straining your finances. Assessing your monthly income and expenses will help you arrive at a sensible figure, ensuring you don't overcommit. - read more
Need Help Finding a Loan?
Get a free car loan eligibility assessment and compare offers tailored
specifically to your circumstances.
No comments yet. Be the first to share your thoughts.