Avenue Bank has announced that it has been granted a restricted banking licence by the Australian Prudential Regulation Authority (APRA). Avenue will be able to operate as a Restricted Authorised Deposit-taking Institution (RADI) until September 7, 2023, under the terms of the licence.
Avenue is not required to meet the full ADI prudential framework under its restricted licence and will not be offering banking products to the general public.
“APRA has awarded Avenue with a restricted banking licence, and we are now Avenue Bank,” Stephen Rix, Chairman and George Confos Chief Executive Officer, Avenue bank said in a joint letter to shareholders.
“APRA’s decision to grant Avenue a Restricted ADI licence this week demonstrates our advanced value proposition and means we are now authorised to accept a limited number of deposits from select customers.
“The Restricted ADI licence allows Avenue Bank to trial our first products with a select group of strategic customers and business partners later this year, before we obtain a full ADI licence and launch broadly in the market.
“In the meantime, we continue to build our core technology and operational capabilities in support of our trial and launch,” the letter said.
Avenue, which was co-founded by Colin Porter and Dale Hurley, is backed by the Australian Stock Exchange-listed Liberty Financial Group. Avenue signed former Commonwealth Bank executive George Confos in July last year.
In February this year, Avenue closed its $37m Series B funding round. Avenue said it will use the fresh funds to build core banking technology and activate Avenue’s ‘go-to-market’ strategy.
Avenue previously stated that it expected to receive its Restricted ADI licence from the Australian Prudential Regulation Authority (APRA) late this year and that it plans to become a fully regulated, independent bank and deliver its first commercial products in late 2021.