Fintech start-up Dosh is making its next move. By registering to become a bank in New Zealand, the company will be the country’s first locally owned, solely digital bank.

Wanting to increase the competition in New Zealand’s banking industry, Dosh is registering through the Reserve Bank to become a bank that caters specifically for digitally native Kiwis.

By becoming a digital-only bank, Dosh is hoping to eliminate costs that come with physical branches and therefore, reduce prices for customers.

If Dosh is successful in its application, the company would be marked as the country’s very first digital-only bank.

“We get that most banks have apps these days. But these services have been layered on top of a traditional business model that ultimately costs consumers more,” says Dosh Co-Founder Shane Marsh.

“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.”

Read more: Bringing the digital wallet to New Zealand

Dosh entered the market in late 2021, where the start-up first provided consumers with digital wallet services and personal loans. Since then, Dosh has offered so much more, including its physical card in collaboration with Visa.

With the application to become a bank, Dosh will be able to expand its offering to hold money for consumers instead of having to partner up with legacy banks.

This will bring Dosh into the same competition as the big banks, which according to the S&P Global Ratings report, revealed that New Zealand banks are the second most profitable in the world.

But a Commerce Commission market study revealed that the New Zealand banking sector had “limited investment in innovation”.

Dosh wants to fill that gap by taking this opportunity to bring forward digital banking solutions.

“We really wanted to bring the latest in banking innovation from around the world to Kiwis. Our goal is also to connect with a new generation of bankers and strengthen their financial wellbeing,” adds fellow Co-Founder James McEniery.

“We hope to pave the way for more banking entrants like us. Our goal is to help foster a sector that is accessible to new participants and offers services that are accessible to new consumers.”