Indue to list publicly or become a full-service bank
(8 March 2016 – Australia) Financial payments company Indue is considering a move to transition into a full bank, or go public according to the Sydney Morning Herald.
Chief executive Manuel Garcia told Fairfax he seeking around A$20 million in capital, saying "The most important problem for me is to fix my access to capital.”
Owned by mutual lenders such as credit unions, the payment provider issues pre-paid cards for retailers such as Coles and on behalf of the federal government to welfare recipients.
The company is exploring the option of a possible initial public offering, takeover or becoming a bank as it hfull banking licence.
However, it would need to raise more capital to call itself a bank and start lending.
"We wouldn't take on the big banks but there is a great opportunity for a niche player," Garcia said. "I would want to be a different type of bank."
But given it can already take deposits, a cheap source of funds, he could see an opportunity for Indue to lend these to build a much more profitable business.
The company has A$27.4 million in total (tier I and tier II) capital as of June 2015, which is just over half that required by the Australian Prudential Regulation Authority (APRA), which requires companies to hold a minimum of A$50 million in capital to become a bank.
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