Douugh

Douugh is an Australian and US-based neobank that provides digital banking services in the US via a mobile app, under the license of Choice Financial Group. 

It offers a checking account that allows customers to split their expenses into separate ‘jars’ for specific purposes, and also features a debit card. The app also provides Personal Finance Management (PFM) tools that leverage artificial intelligence (AI) to provide customers with detailed insights into their financial position and aid them in building their wealth. In addition, the app also provides commission-free investment options in exchange-traded funds (ETFs). Douugh launched its app in the US in November 2020, and expects to officially launch its banking app in Australia in 2022.

Key customers and partnerships

As of December 2021, Douugh reported a user base of over 63,000 customers.

In November 2021, the company entered into a partnership with Railsbank, a UK-based company offering a banking-as-a-service (BaaS) platform. The partnership was expected to aid Douugh to expand its presence in Australia and enter new markets such as the UK, Europe, and Southeast Asia. As part of the partnership, Railbank will provide Douugh with banking infrastructure, licensing, and Bank Identifier Number (BIN) sponsorship with Mastercard services, enabling Douugh to offer a full suite of banking products and services in new and existing markets. 

In December 2021, Douugh made its first branded partnership in the US with full-stack insurer Lemonade to offer insurance products to Douugh’s US customers. Through the partnership, Lemonade’s insurance products are expected to be offered as part of Douugh’s curated marketplace of financial services. The partnership is in line with Douugh’s strategy of integrating financial services within its app by building strategic partnerships with financial service brands.

Funding and financials

In October 2020, the company went public via an initial public offering (IPO) on the Australian Securities Exchange (ASX). In December 2021, it announced plans for a capital raise of AUD 8 million (~USD 5.7 million) through a private placement of AUD 5.5 million (~USD 3.9 million) and a share purchase plan of AUD 2.5 million (~USD 1.8 million). The company expected to use the fresh capital to fund its US expansion.

In FY2023 (ended June 30, 2023), the company reported a revenue of AUD 146,226 (USD 97,578; down 75% YoY) and a net loss of AUD 6 million (USD 4 million) compared with AUD 11.6 million (USD 7.7 million) in FY2022.