Novatti Group
(ASX:NOV), a leading digital transaction solutions provider, has entered into a strategic agreement with BC Investment Group Holdings (BC). As part of the agreement, BC will invest $15m into Novatti's new banking business.
Novatti IBA is intended to be a "borderless bank". It will have a purely digital business model and will aim to be a leading provider of cross-border financial services. Novatti IBA had applied for a restricted banking licence from the Australian Prudential Regulatory Authority (APRA), but a hold was placed on new licences following the onset of COVID-19. APRA has since said that it will recommence issuing licences from March 2021.
BC will invest in Novatti B Holding Company Pty Ltd, the parent company of Novatti IBA, in two rounds. These funds will be used to accelerate launch of product and customer acquisition, and progress the application to a full banking licence. In addition, BC are currently investing $3 million directly into Novatti for growth of existing businesses.
Novatti Managing Director Peter Cook comments: "Developing Novatti’s new banking business is a key pillar of our long-term growth strategy to provide value-add to our existing, established businesses. To this end, we are delighted to have secured this strategic partnership with BC Invest, who bring with them strong financial services capabilities, including through their existing lending operations, as well as key customer acquisition channels. In particular, these capabilities will be invaluable in bringing income-generating products, including lending products, to market, which APRA has made clear is a priority for all banking licence applicants in addition to their deposit taking credentials."
Shares in Novatti Group
(ASX:NOV) are trading 7.3 per cent higher at 67 cents.
