A startup backed by former ANZ Bank boss Mike Smith is eyeing the transactional banking market, with a payments app that promises features like cheap foreign exchange and budgeting tips.

Melbourne-based Yondr is the latest fintech trying to lure younger digital-savvy customers away from the big four banks through an app that manages their payments needs. It’s a lucrative market that’s also being targeted by much larger rivals, including ASX-listed Bendigo and Adelaide Bank’s Up offering and United Kingdom fintech Revolut.

Founded in 2018, the fintech startup counts Mr Smith - who has invested in various fintechs since leaving ANZ in late 2015 - as one of its shareholders.

Amid rapid changes in payments, founder Shane Chanel said Yondr was looking for a slice of the market by offering services to help people better manage their money, such as prompts to alert users if they are spending more than planned, and competitive foreign exchange rates.

“When people travel, they might not pay fees on their credit cards, but what they don’t know is that they’re getting charged quite substantial exchange rates,” Mr Chanel said. “How do we save money for them there?“

Mr Chanel added the company was aiming to launch the app to the public in the next couple of months.

Mr Smith, who chaired the startup incubator York Butter Factory after leaving ANZ in 2015, said he has had mixed results from his fintech investments so far.

He added that while he has been approached by a number of startups, he thought the model Yondr was taking to market was “smart,” noting that payments has been a key area of interest for fintechs seeking to disrupt incumbent banks.

“You are seeing the start of the vision at present, and it will be an exciting time for Yondr as it develops its offering,” Mr Smith said in a statement.