Banking Circle, based in Luxembourg and known for its technology-driven financial solutions, has finalized its acquisition of Australian Settlements Limited (ASL), an Authorized Deposit Taking Institution in Australia. This strategic move aims to bolster Banking Circle’s footprint in the Australian market and expand its service offerings. With this acquisition, Banking Circle gains access to ASL’s well-established domestic banking services, which will be integrated with Banking Circle’s cross-border payment capabilities. This integration is set to create a comprehensive payments platform offering services both within Australia and globally. This development presents an opportunity for financial institutions to tap into enhanced payment solutions.
Banking Circle previously launched operations in Australia with BC Payments Australia, a project initiated in 2023 under an Australian Financial Services License. At that time, the firm cooperated with ASL to provide domestic payment services. Compared to earlier phases where collaboration was limited, the acquisition of ASL represents a more integrated approach, allowing Banking Circle to provide a complete suite of services through a single service point. Banking Circle’s plan is to streamline services by combining local benefits with international market access.
What is the acquisition’s purpose?
The key purpose behind Banking Circle acquiring ASL was to enhance payment platforms by offering real-time payment services to Australian and global financial institutions. Leveraging ASL’s domestic payment schemes, Banking Circle can now provide access to various schemes such as NPP, PayID, BECS, and others. This merger aids in unlocking potential for cross-border transactions, ensuring users can interact with both domestic and international financial systems seamlessly.
What are the benefits for Australian financial institutions?
Through this acquisition, Australian financial institutions can experience increased access to multi-currency accounts, foreign exchange services, and a robust global clearing network, offering enhanced payment capabilities. The platform is engineered to be scalable and resilient, meeting the demands of evolving financial landscape. Banking Circle’s familiarity with global compliance and risk management complements ASL’s local expertise, promising efficient fraud prevention. The network aims to offer agile and cost-effective settlement solutions, encouraging financial innovation within Australia’s fintech and banking sectors.
Laust Bertelsen, CEO of Banking Circle, noted the strategic nature of the acquisition, emphasizing Australia’s importance in their market strategy.
“Bringing ASL into our global platform establishes an expanded presence for Banking Circle in Australia, one of our most strategically important markets.”
He believes that their combined platform can provide secure, efficient payment solutions. Mishal Ruparel, CCO of Banking Circle, reinforced the demand, stating,
“We’re seeing strong demand from both Australian financial institutions looking to partner with a specialist payments bank to process their domestic and global payments; as well as Australian companies looking to scale globally for a payments bank overseas.”
ASL’s background as a B2B Payments-Platform-as-a-Service provider aligns closely with Banking Circle’s vision, which includes direct connectivity with Australia’s payment systems. Comprehending the local regulatory ecosystem, ASL provides a critical advantage for compliance. Additionally, by settling directly with the Reserve Bank of Australia, ASL strengthens Banking Circle’s capacity to serve a wide spectrum of financial clients, ranging from banks to digital financial platforms.
Banking Circle had established its full banking presence in Luxembourg and has been progressively building infrastructure in Australia for major currencies. This acquisition is expected to enhance their offerings of low-cost, secure payment tools. The integration serves as an enabling hub for financial growth, enabling local banks and fintechs to focus on their core operations while leveraging advanced payment solutions.
The acquisition represents a significant step for Banking Circle, combining domestic capabilities with international expertise. It aims to meet the increasing demand for robust payment infrastructure, facilitating a unified service platform for Australian financial institutions. This aligns the strategic focus on providing faster, efficient, and more secure solutions for both domestic and global payment operations, ensuring competitiveness in today’s rapid financial environment.
