International Bank of Australia Secures RADI Banking Licence for Novatti Group
(29 November 2022 – Australia) Payment services company Novatti Group announced its subsidiary has been granted a Restricted Authorised Deposit-taking Institution (RADI) licence to launch the International Bank of Australia, with hopes of opening its first live account in H1 2023.
The granting of a RADI licence by the Australian Prudential Regulation Authority (APRA) was four years in the making, giving the group "real infrastructure and real licensing within the world of payments" at a time when many previous licence holders have not proceeded further.
Novatti Group also announced it has now received a A$12.8 million special dividend from its 19.9 percent strategic stake in ASX-listed Reckon Limited to further strengthen its balance sheet. Novatti and Reckon have formed a strategic business partnership to offer payment services to Reckon’s 117,000 cloud-based users.
“Being granted a restricted banking licence is a very significant milestone in the delivery of 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” stated Novatti’s Managing Director, Peter Cook.
“We are absolutely delighted to be able to now move ahead and launch the International Bank of Australia, with a name that speaks to Novatti’s truly global ambitions.”
“Novatti and Reckon have built a strong partnership since we acquired our strategic stake last year. This partnership continues to be supported by clear synergies between our respective accounting and payments solutions” Cook added.
“A key focus for the bank will be partnering with fintechs, such as Novatti, who need an innovative and nimble banking partner. For a long time, we have known that 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” commented International Bank of Australia CEO, Guy Carvalho.