Teachers Mutual Bank launches neobank 'Hiver'

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on June 21, 2021
Teachers Mutual Bank launches neobank 'Hiver'

Teachers Mutual Bank has soft-launched its own neobank called Hiver, which is the first neo created by a customer-owned bank.

Teachers Mutual CEO Steve James said Hiver's launch is "an exciting development" in the neobank space.

"We are combining the best of new banking technology with the financial security of a nine-billion-dollar balance sheet and a proven, ethical business model," he said.

"We are proud to be offering this unique service to some of our most valued community members, essential and frontline workers, backing their savings with our strong capital and liquidity."

The first product to be launched will reportedly be a savings account with 'attractive' interest rates, with home loans via a broker channel scheduled for launch over the next few months.

The savings account features a 0.50% p.a. base interest rate, with a bonus rate of 0.25% if customers make a deposit, and make no more than one withdrawal per month.

Compared to other banks - especially neos - this is slightly lower than some of the highest-yielding accounts, albeit with less onerous criteria to attain the bonus rate.

For a limited time the account will also feature 1% cashback on essential purchases such as groceries and public transport.


Teachers Mutual Bank's Carolyn Murphy and Steve James. Image supplied.

Chief digital bank officer Carolyn Murphy will head the outfit, who said the launch of Hiver further consolidates 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 for people working in essential services across the country, in cities and regional areas, day and night," she said.

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

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

Hiver's launch follows CUA rebranding as 'Great Southern Bank' earlier in June.

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

Photo by Alexander Mils on Unsplash

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Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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