Sydney-based challenger Avenue Bank has secured a full banking license to operate as an Authorised Deposit Taking Institution (ADI) by the Australian Prudential Regulation Authority (APRA).
Founded in 2018, Avenue Bank claims it is the “first and only Australian bank” to specialise in bank guarantees for Australian businesses. Through its digital solutions, it aims to ease management of bank guarantees and the claims process for landlords and enhance security, mitigating the risk of loss, theft, or fraud while tenants benefit from what it claims is a fully digital origination process.
“Australia’s banking landscape has evolved, yet the bank guarantee market remains stagnant, burdened by outdated, paper-based processes,” said Peita Piper, CEO of Avenue Bank. “Small businesses are stifled by unnecessary delays, uncertainty, and financial strains.”
The digital business bank was granted a restricted banking license by the APRA in September 2021, then allowing it to conduct limited banking business with a selected number of customers and business partners. Founded by entrepreneurs Colin Porter and Dale Hurley, the challenger had last closed A$37 million Series B funding round in 2021. As of 2023, it was looking to raise funds, reportedly slashing its initial goal of A$12 million into half.
