Dosh Pauses Banking Bid Amid Regulatory Hurdles, Eyes Home Loan Opportunities
New Zealand fintech Dosh is reassessing its approach to banking registration after being turned down by the Reserve Bank last year. The RBNZ cited that Dosh's proposed digital banking model was not viable under current legislation, which requires proof of $30 million in regulatory capital. In contrast, the upcoming Deposit Takers Act (DTA) will reduce this requirement to $5 million.
Dosh had modeled itself after UK-based Monzo, a fully online bank that offers free personal accounts and paid upgrade plans with insurance and interest boosts. Dosh's co-founder Marsh explained that their proposed model was different from traditional banks as it focused on transactional services without credit offerings.
Instead of reapplying under current legislation, Dosh is considering waiting for the new regulatory framework to take effect in 2028. The company is also prioritizing its home loan offers and partnership with One NZ, including a 'One NZ dosh' Visa card that rewards users with phone dollars redeemable on One NZ products.