Australian challenger Avenue lands restricted banking licence
Australian digital business bank Avenue has become one of the first companies to receive a restricted banking licence in the country since the Australian Prudential Regulation Authority (APRA) recommenced licensing in March.
As a Restricted ADI, Avenue Bank will be permitted to conduct limited banking business with select customers and business partners, prior to a full public launch on receiving its full ADI licence.
Avenue Bank says it wants to focus on cash flow solutions for Australian small and medium-sized enterprises (SMEs).
“We aim to be a cash flow partner and you need to be a bank to do that. We will be exploring more ways to leverage our status as a bank upon becoming an ADI, offering unique services in the market,” says Avenue Bank CEO George Confos.
The Sydney-based bank will provide funding opportunities to businesses still reeling from the ongoing COVID-19 pandemic as it looks to aid the “traditionally underserviced” SME banking sector.
“Small business is the growth engine of the economy, and they need finance to grow,” says Confos, adding that Avenue will aim to provide businesses “the funding they deserve, and quickly, without putting up their home as security”.
Avenue Bank recently closed a $37 million Series B funding round and hired Steve Kinsella as chief financial officer, a former Bankwest and Commonwealth Bank of Australia exec.