Fintech small-cap business Novatti says will launch its International Bank of Australia after being granted a restricted deposit-taking institution licence by the Australian Prudential Regulation Authority.
Novatti holds a 91 per cent stake in International Bank of Australia, which has secured $8m in a Series A funding round, including an additional $5m investment by Novatti.
Managing director Peter Cook said being granted a restricted banking licence is a "very significant milestone" in Novatti's long term strategy, and is the culmination of several years of investment and development.
"We see banking services as significant across card issuing, merchant acquiring, billing and cross-border payments as it underpins the infrastructure and capability to Novatti's core payments business while also giving us the ability to increase margins."
Traditional banks have not been able to keep up with the requirements of the disruptive business models of fintechs, particularly those offering alternative ways to make or accept payments, domestically or internationally. IBOA will overcome this challenge, leveraging technology to enable the seamless end-to-end movement of money, IBOA chief executive Guy Carvalho said.
"A key focus for the bank will be partnering with fintechs, such as Novatti, who need an innovative and nimble banking partner."
