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thepylee

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16/11/19

14:08

Post #: 41462914
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Originally posted by ben79: ↑

@OzJ

It really looks like you are trying to argue yourself out of a hole here.

Isx isn't looking to replace it's emoney institution status in the EU, it's looking to supplement it in Australia with an Australian ADI license. To carry on banking business in Australia, you need to be classified as an ADI. A European license is not sufficient . APRA classifies banking as deposit taking. The banking act also adds advancing money but deposit taking is sufficient.

In the EU, ISX can issue bank accounts and take deposits. It has a core banking system (probanx) and swift accreditation. It can provide merchant acquiring services across all the major payment providers in multiple currencies. Looks very much like a banking as a service play to me. Fintechs need a front end, to focus on CX and UX and APIs. ISX will provide the back end.

The company chooses to hold customer deposits with the central bank. This improves it's service proposition to clients as it lowers their credit risk (to ISX) and lowers ISXs own capital requirements. Smart play. What's not to like?

Your 85% is way off base. Are you referring to a historical reporting period with customers it no longer services? This is a bit misleading which I think you know. The company has already disclosed the majority of it's customer base as low risk merchants.

Even if this were not the case, the 'dodgy' end of the market, i.e. porn, crypto, gambling, fx etc are all legally operating businesses that need to manage their regulatory obligations. ISX provides part of that regulatory service as it is entitled to do so (whatever the ideological leanings of the ASX are). When these merchants have their legal status revoked, ISX stops providing them with services as proven through its dealings with OT Capital.

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Great work there mate, saves me alot of trouble dealing with this ill informed chap.

Also, @OzJ, ECB license for ISX is not from Bank of Lithuania as you strongly stated. It is from Central Bank of Cyprus.

Now why would ISX want to hold the merchants funds in their accounts when it's way more lucrative for the merchants to be actively depositing and withdrawing/sending their money out of these EMA accounts. It's a bloody brilliant business model.

ISX Price at posting: $1.07 Sentiment: Buy Disclosure: Held
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