Avenue Bank

What Avenue Bank does

Avenue Bank is an Australian Authorised Deposit-taking Institution (ADI) and digital-first bank that specialises exclusively in bank guarantees for small and medium-sized enterprises. Founded by CreditorWatch co-founders Colin Porter and Dale Hurley, the bank was granted a restricted ADI licence by APRA in September 2021 and a full unrestricted ADI licence in March 2024, establishing it as Australia's first and only bank dedicated to bank guarantees. Avenue serves Australian SMEs and corporates requiring guarantees for commercial leases (office, industrial, retail), performance obligations, payment assurance, warranty/retention security, and advance payment obligations. The company's central differentiation versus traditional banks is delivery speed: a 5-minute online application, 30-second pre-approval, and under-24-hour guarantee issuance, contrasted with the 4-6 week timelines typical of incumbent banks.

The bank's core technology stack comprises SAP Fioneer's Cloud for Banking (C4B) solution as the core banking platform, nCino's Bank Operating System for SME business banking workflows, and Lacework for cloud security infrastructure. Layered on top is a proprietary credit assessment algorithm — leveraging CreditorWatch pedigree — that evaluates both financial and non-financial aspects of applicants. The customer journey runs entirely through a self-serve web application portal: customers apply online, funds are placed as 100% cash-backed security into rolling term deposits, and a digital bank guarantee is issued. Beneficiary-facing services include a Digital Claim Form for full or partial claims and an Authentication Service to verify guarantee authenticity, status, and face value. Products span lease, performance, payment, warranty/retention, and advance payment guarantees, with term deposits as the supporting deposit vehicle.

Avenue Bank's revenue model rests on two primary streams plus secondary fee income. The dominant stream is a recurring 2.95% per annum fee, charged monthly, on the outstanding value of each bank guarantee — effectively subscription-style recurring revenue from the guarantee book. The second stream is net interest income on customer security deposits: customers place 100% of the guarantee value in rolling three-month term deposits and are paid up to 5.25% p.a., with Avenue retaining the spread. Secondary revenue includes a $250 variation fee for reissuance of guarantees with incorrect details, plus currently waived establishment fees as a customer-acquisition lever. Distribution is fully digital, comprising the website application portal, phone support (1300 283 265), and a partner referral network of landlords, leasing agents, tenant advisors, real estate consultants, business brokers, financial planners, accountants, and real estate partners such as Raine & Horne (Sept 2025) and Development Ready (Oct 2025). Avenue operates from offices in Sydney (headquarters), Melbourne, Brisbane, and Perth, serving customers nationally.

Name

Avenue Bank

Legal name

Avenue Bank Ltd

Website

https://avenuebank.com.au

Company type

Private

Founded year

2020

Operating status

Operating

Headcount range

11–50 employees

Short description

Avenue Bank is Australia's first and only ADI-licensed bank specialising exclusively in digital bank guarantees for SMEs, issuing lease, performance, and project guarantees online in under 24 hours versus traditional banks' multi-week timelines.

Ownership category

akta.pro rank

Headquarters

HQ city

Sydney

HQ country

Australia

HQ region

Oceania

Offices4 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Marketing or Sales, Infrastructure, Others

Revenue model

1. Bank Guarantee Fees: Ongoing fee charged at 2.95% per annum, calculated on the value of the bank guarantee and charged monthly. This is the primary revenue stream from guarantee holders.
2. Security Deposit Interest: Customers deposit funds (typically 100% of guarantee value) into term deposits with Avenue Bank. The bank earns interest income on these deposits while paying customers a competitive rate (up to 5.25% p.a.).
3. Variation Fees: $250 fee charged when a bank guarantee needs to be reissued due to incorrect details after issuance.

Pricing tiers

Go-to-market motion2 records

Distribution channels3 records

Marketing channels4 records

Core offering

Avenue Bank is an Australian ADI-licensed digital business bank that specializes exclusively in issuing 100% cash-backed bank guarantees for SMEs. Customers complete a 5-minute online application, receive 30-second pre-approval, and obtain a fully-issued guarantee in under 24 hours. The guarantees cover commercial leases, performance obligations, payment assurance, warranty/retention, and advance payment purposes, with security deposits held in interest-bearing term deposits earning up to 5.25% p.a.

Product overview

Avenue Bank operates as a single-product specialist bank focused exclusively on bank guarantees. The core offering is the Avenue Bank Guarantee - a 100% cash-backed instrument where customers deposit funds that serve as security. The product portfolio includes lease bank guarantees (the primary product), performance bank guarantees, payment bank guarantees, warranty/retention bank guarantees, and advance payment guarantees. Supporting the guarantee product are term deposit accounts for holding security deposits, a digital claim form for beneficiaries to submit claims online, and a bank guarantee authentication service. The entire process is digital-first, from 5-minute online applications to 24-hour guarantee issuance. The bank does not offer multiple product lines or modules - it is deliberately a niche, single-purpose bank.

Differentiator

Problem solved

Functional benefit

Products and services

• Bank Guarantee Avenue Bank's primary product - a 100% cash-backed bank guarantee available for commercial leases, performance obligations, warranty requirements, and project security. The guarantee is unconditional, irrevocable, and payable on demand within 48 hours of a valid claim. Customers deposit cash security (e.g., $100,000 for a $100,000 guarantee) which earns interest while held.
• Lease Bank Guarantee The most common form of bank guarantee used to secure commercial property leases. Replaces traditional cash bonds and typically remains in place for the life of the lease. Available for office, industrial, and retail property.
• Performance Bank Guarantee Used to support contractual performance obligations, particularly in construction and service agreements.
• Payment Bank Guarantee Provides payment assurance to suppliers and vendors, often used in larger contracts involving staged payments or credit terms.
• Warranty/Retention Bank Guarantee Issued after project completion to provide security during the defects liability period, instead of retaining cash from a final payment.
• Advance Payment Guarantee Used where an upfront payment is required, providing assurance that funds will be applied in line with the contract.
• Term Deposit (Security Deposit Account) Security deposit accounts where customer funds are held in rolling 3-month term deposits earning interest. The deposits serve as security for bank guarantees and are government-guaranteed under the Financial Claims Scheme up to $250,000.

Quantifiable outcome

• Bank guarantee issued in under 24 hours (vs. traditional 4-6 weeks)
• +8 more outcomes

Named customers7 records

Segments6 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Five partnerships are on record, tiered minor and core.

• Development Ready / Ready Media GroupminorGTM or Marketing Partner · 8 October 2025Content partnership for article on bank guarantees for property developers. Development Ready published full article with Avenue Bank's expertise.
• Raine & HorneminorGTM or Marketing Partner · 8 September 2025Partnership with Raine & Horne for research on SME relocation delays due to bank guarantee processes. Combined industry insights with Avenue's expertise in fast, digital bank guarantees.
• nCinocoreTechnology or Integration · 28 September 2022Avenue Bank is live on nCino Bank Operating System - cloud banking and digital transformation solution for SME business banking.
• Brilliance FinancialminorStrategic or Co-development Partner · 9 February 2022Partnered with Brilliance Financial to create innovative product offering enabling Avenue to move at pace for customers.
• SAP FioneercoreTechnology or Integration · 8 September 2021SAP Fioneer's Cloud for Banking (C4B) solution chosen as core banking platform. Instrumental in obtaining restricted banking licence from APRA due to its reputation for reliability with the regulator.

Scale indicators6 records

Recent moves7 records

Expansion highlights7 records

Direct peers

• Judo Bank: Australian challenger bank targeting SMEs with a focused proposition, explicitly cited in Avenue's own strategic context as the model it intends to replicate. Operates as a licensed ADI in the same niche-Fintech-for-SME-banking category as Avenue.

Broad incumbents

• Macquarie Bank: Australia's largest challenger-style bank with a deep business banking and SME/commercial finance franchise. Offers bank guarantees as part of a much broader product suite, making it the closest incumbent comparator to Avenue's specialist SME BG focus.
• Commonwealth Bank of Australia (CommBank): Largest Australian bank and traditional issuer of bank guarantees for commercial leases. Multiple Avenue executives (George Confos, Steve Kinsella) were former CommBank senior leaders, underlining how directly CommBank competes in Avenue's core product.
• ANZ (Australia and New Zealand Banking Group): Big-four Australian bank with a substantial commercial banking and SME lending book, including bank guarantee issuance. Comparable as a broad incumbent competitor Avenue explicitly positions against on speed and digital experience.
• Westpac: Big-four Australian bank offering bank guarantees across commercial and SME segments. Comparable as incumbent competitor and a major source of Avenue's risk leadership pedigree (Chief Risk Officer Ji Hee Moon was formerly CCO at Westpac Business Bank).
• National Australia Bank (NAB): Big-four Australian bank with a large commercial banking franchise and a digital banking subsidiary (UBank). Relevant incumbent comparator because of its SME commercial lending and bank guarantee products.
• UBank: Digital bank subsidiary of NAB that previously employed Avenue's CEO Peita Piper as a founding member. Operates in the same Australian digital-first banking space as Avenue, though with a retail deposit and mortgage orientation rather than specialist BGs.

Emerging players

• Up Banking: Australian neobank offering transactional and savings accounts to consumers and SMBs. Comparable as a digital-native Australian bank in the early-stage/scale-up phase, though Up focuses on everyday banking rather than guarantees.
• Alex Bank: Australian digital challenger bank offering competitive term deposits and savings products. Adjacent to Avenue's specialist deposit-and-BG model through its direct competition for the same customer savings/deposit wallet.
• Tyro Payments: Australian fintech focused on payments and integrated banking products for SMEs. Comparable as a fintech targeting Australian small businesses with embedded financial services, complementary to Avenue's BG-first SME play.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/people/Avenue-Bank/61556723198615
• LinkedInlinkedin.com/company/avenuebank
• Instagraminstagram.com/avenue.bank

Compliance4 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles12 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Avenue Bank