Avenue Bank gets full licence, revolutionising Australia's bank guarantee market

Australia's newest bank, Avenue Bank, has successfully acquired a full licence to operate as an Authorised Deposit Taking Institution (ADI). This milestone, granted by the Australian Prudential Regulation Authority (APRA) on 4th March 2024, significantly changes the landscape especially for small and medium-sized businesses seeking bank guarantees in the country.

Avenue Bank aims to revolutionise this under-serviced multi-billion-dollar market, particularly focusing on alleviating the lengthy process of securing bank guarantees for landlords. Until now, this procedure has been dominated by traditional, paper-centric methods, which could take up to two months. However, with Avenue's digital convenience, the process may be streamlined to a mere day. Their research indicates that 29 percent of businesses have had to postpone transitioning offices and 46 percent experienced significant disruption due to obtaining a bank guarantee.

The CEO of Avenue Bank, Peita Piper, emphasised the necessity for change, stating, "Australia's banking landscape has evolved, yet the bank guarantee market remains stagnant, burdened by outdated, paper-based processes. Small businesses are stifled by unnecessary delays, uncertainty, and financial strains." She explained that despite nearly half of business owners claiming the bank guarantee process is too lengthy, there has been scarce innovation in this approximately $9 billion market segment.

The game-changing approach by Avenue Bank marks it as the first bank to specialise in bank guarantees. Its digital solutions streamline the management of bank guarantees and the claims process for landlords, enhance security, and mitigate the risk of loss, theft, or fraud. Tenants can also benefit from an entirely digital origination process. Peita Piper reassures that "with specialised customer service, we will move as fast as the customer moves."

Bradley Delamare, CEO of Tank Stream Labs and a customer of Avenue Bank, commended the bank's innovative tech solution, claiming his previous experience with traditional bank guarantee processes was challenging and outdated. He emphatically stated, "In the 21st century, surely there's a better way."

With Avenue Bank, customers will not only experience convenience but also enjoy a competitive interest rate on their security deposits, which is 100 percent government-guaranteed (up to $250,000 per account holder). Additionally, for a limited time, Avenue Bank will be waiving application fees, providing further financial benefits for its customers in these initial stages.

Peita Piper has indicated firm plans for expansion, stating, "This is only the beginning for Avenue". She underscored the bank's commitment to further innovating the bank guarantee market in Australia, making banking an easier, faster, and more efficient process for businesses around the country.