Photo Courtesy: The Press NZ
Dosh, a New Zealand-based money app, has applied for a banking licence, aiming to become the country’s first locally owned digital-only bank.
If the application becomes successful, Dosh co-founders Shane Marsh and James McEniery see this as an opportunity to increase essential competition in the banking industry and improve the financial health of New Zealanders, particularly for digital natives.
Shane Marsh stated that the company has no plans to open any physical branches, instead opting for a fully digital structure that will offer financial services such as deposits, personal loans, and home loans, with a particular focus on young first-time homebuyers.
By adopting a digital-only model, Dosh eliminates the costs associated with physical branches, leading to reduced fees for customers.
“We get that most banks have apps these days,” says Marsh. “But these services have been layered on top of a traditional business model that ultimately costs consumers more. A digital-only bank like Dosh is designed from the ground up to deliver smarter banking solutions for less.
“It’s banking without the bull,” he added.
Dosh’s application is currently being processed by the Reserve Bank of New Zealand (Te Pūtea Matua), which regulates banks in New Zealand. The Reserve Bank of New Zealand will then decide whether to grant Dosh a licence, allowing it to join established banks such as ANZ, ASB, and BNZ. Getting a banking licence would take Dosh about a year, which requires a start-up bank to have $30 million in capital.
Dosh is the trading name for MCA Investments. The company is 30.86% owned by Marsh, 30.86% by McEniery, 21.21% by Hamsptead Trustee, 8.47% by Avanti, and some other smaller shareholders.
While there are ongoing conversations with investors about the capital requirements for launching a bank, Marsh said, “we are confident we can meet the Reserve Bank’s requirements today.”