Introduction
An authorised deposit-taking institution (ADI) that offers processing, clearing, and settlement services to local banks and payment businesses, Australian Settlements Limited (ASL) is going to be acquired by Banking Circle, which is based in Luxembourg. This acquisition would allow Banking Circle to expand its footprint in Australia.
A wide variety of customers, ranging from online merchants to institutional banks, are served by Banking Circle, which offers a variety of payment and banking services. These services include, amongst others, cross-border payments, card issuing, accounts, liquidity management, and revenue-based financing.
Since 2023, the corporation has been conducting business in Australia through its subsidiary, BC Payments, which is situated in Sydney and offers payment services through Advanced Sign Language (ASL). The CEO of the group is Laust Bertelsen. The financial parameters of the transaction have not been published, and the deal is still subject to the conditions of closure and clearance from regulatory agencies.
Read: Fintech in Hospitality: Top 10 Fintech Solutions for Hotels
Industry Comments
Speaking on the acquisition, Bertelsen describes Australia as “a strategic market for Banking Circle” due to its “significant cross-border trade flows and thriving banking and fintech ecosystem”, and says that the ASL deal “brings us closer to our vision of creating a global real-time clearing and settlement hub for all major currencies”.
Banking Circle says the deal will “accelerate its expansion into Australia” and will enable the firm to “open up Australian dollar settlement services to global players”.
FAQs
1. Who is Banking Circle, and why is it acquiring Australian Settlements Limited (ASL)?
Banking Circle is a Luxembourg-based financial institution that provides payment and banking solutions to a diverse customer base, including online merchants and institutional banks. The acquisition of ASL, an Australian authorised deposit-taking institution, will allow Banking Circle to expand its presence in the Australian market. The deal aligns with its goal to create a global real-time clearing and settlement hub for all major currencies, starting with offering Australian dollar settlement services to global players.
2. What services does Banking Circle provide, and how does ASL fit into its strategy?
Banking Circle offers services such as cross-border payments, card issuing, liquidity management, accounts, and revenue-based financing. ASL provides clearing, settlement, and processing services for local banks and payment companies in Australia. By acquiring ASL, Banking Circle can integrate these capabilities into its global operations, strengthen its foothold in Australia, and enhance its service portfolio to better serve the growing banking and fintech ecosystem in the region.
3. What is the significance of this acquisition for Australia’s banking and fintech ecosystem?
This acquisition underscores Australia’s growing importance as a strategic market for global financial services. With substantial cross-border trade flows and a robust fintech ecosystem, Australia is poised to benefit from Banking Circle’s expertise in real-time clearing and settlement services. The deal also introduces new opportunities for local and international businesses to access Australian dollar settlement services, fostering innovation and collaboration within the financial sector.
Read: Top 10 Neobank Companies of the Fintech World
Conclusion
Banking Circle’s acquisition of Australian Settlements Limited is a strategic move that highlights Australia’s importance in the global banking and fintech landscape. This deal, while subject to regulatory approvals, reflects Banking Circle’s commitment to expanding its services and providing real-time settlement solutions for Australian dollars. With this acquisition, local banks, payment companies, and global players stand to benefit from enhanced payment capabilities and broader access to Banking Circle’s innovative offerings. The move is a promising step toward creating a more integrated and efficient global financial ecosystem, with Australia playing a key role.
Thank you for exploring this journey with us! If you’d like to share your thoughts or join the discussion, please contact us at news@intentamplify.com.
Read: Fintech Marketing: Top 10 Power Strategies to Accelerate Growth
Thanks for reading!
