BC Investment Group has partnered with Novatti to launch a new banking business in Australia.
Payments company Novatti confirmed the $15 million strategic partnership in an announcement to the ASX.
Once regulatory approval is granted, Novatti will be able to launch and operate a new bank.
BC Invest is a majority-owned subsidiary of Far East Consortium International Limited, a conglomerate listed on the Hong Kong stock exchange.
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Novatti said it is in regular communication with APRA on assessment of its application for a restricted banking licence.
Following the onset of COVID-19, the regulator had temporarily halted approving any new banking licences.
"Developing Novatti's new banking business is a key pillar of our long-term growth strategy to provide value-add to our existing, established business. 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," Novatti managing director Peter Cook said.
"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.
"In addition, BC Invest's direct investment in Novatti will help further accelerate our broader growth strategy and provides additional opportunities for new business creation. With this depth of partnership, we look forward to working with the BC Invest team."
BC Invest chief executive David Hinde added that his focus will be ensuring Novatti secures its banking licence and building a scalable lending business.