Fintech banks charge ahead

Good morning, I wanted to provide a quick update on the strong momentum we are seeing with fintechs succeeding in Australia's banking sector, further highlighting Novatti's strategy for entering this space. The latest data released by the banking regulator, APRA, highlights that Australians are voting with their feet in backing new fintech challengers. Resident deposits of three existing players (Judo, 86 400, Volt) have now increased to nearly $3b, up more than 60% since April 2020. These challengers are also seeing strong backing from investors, with Judo's valuation increasing to $1.9b following its latest capital raise while it was recently announced that 86 400 will be acquired for more than $200m by big four bank NAB. Continuing the great news for this sector, just last week we also saw APRA issue the first new banking licence since December 2019. This follows APRA putting on hold the approval of applications for new licences, including Novatti's, during COVID. It is great to see this approval process restart! Novatti continues to position itself to capitalise on the strong momentum in this sector once APRA's approval is received. This includes securing both funding commitments and a strategic partner in BC Invest for our dedicated banking subsidiary. BC Invest already has a strong presence in the Australian market with AUD$1.1b of mortgage loans and 3,800 customers. We will continue to keep you updated on further exciting progress in this sector. Share Purchase Plan Open We are also delighted to announce that eligible Novatti shareholders can now download their personalised application form for Novatti's recently announced Share Purchase Plan. Under the SPP, we will be raising up to $5 million to build and expand Novatti’s business. Novatti has a strong track record of delivering growth for its shareholders from funds raised. For example, since Novatti undertook its last substantial capital raising in the June FY20 quarter, quarterly sales revenue has increased by 33%. At the same time, Novatti’s market capitalisation has also increased by more than 200%. Those who held Novatti shares as of the Record Date on 1 July 2021 will be able to participate in the SPP by accessing their personalised application form by clicking below. Download SPP Application Form If you are unable to access your form via the link above using your HIN/SRN to login or unsure if you are eligible to participate in the SPP, please reply to this email and a member of our team will be in touch. Thank you for your ongoing support of Novatti and I look forward to providing further updates soon. Kind regards, Peter Cook Managing Director Novatti Group Limited --> Novatti encourages investors to keep up to date with Novatti news, events and industry research by updating their contact details here. Shareholders can also update their mailing preferences online via our share registry Automic. --> Novatti Investor Presentation --> Novatti Digital Payment Services Explainer