iSignthis Ltd, a payment and identity verification technology company, announced this Thursday that it is one step closer to receiving its Authorised Deposit-taking Institution (ADI) license in Australia, by receiving third-party verification of its core banking system.
Through its subsidiary iSignthis eMoney (AU) Pty Ltd, the company has applied to perform certain aspects of banking as a Provider of a Purchased Payment Facility (PPF Provider) from the Australian Prudential Regulation Authority (APRA), which requires an ADI license.
APRA requires all ADI license applicants to demonstrate a working core banking platform. To meet this requirement, iSignthis acquired the Probanx Coreplus core banking platform back in September of last year.
However, in order to meet the requirements of the APRA, all firms must meet the prudential standard CPS 234, which requires third-party verification of an operative and compliant core banking system.
Today, iSignthis has received reports from its auditors Grant Thornton Australia Ltd and its IT Security Auditors, Security Centric Pty Ltd, on the use of the Probanx Coreplus core banking platform. These reports have been submitted to the APRA.
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CEO of iSignthis: Acquisition of Probanx Platform has Already Paid Off
In the statement released today, iSignthis suggests this is a key milestone for the company towards achieving its ADI license, with the Chief Executive Officer John Karantzis stating in an email to Finance Magnates that its investment in the Probanx Coreplus platform has already paid off.
“On the basis of the foregoing, the Company advises that its ADI application is progressing well, with only minor matters remaining to be addressed. The Company is of the view that the license issue remains on target for early Q2 2019,” the statement said.
iSignthis is a provider of an end-to-end onboarding service for merchants. It offers a streamlined payment and identity service, with its two main products being Paydentity and ISXPay. Previously, the company has stated that the “overwhelming majority” of ISXPay’s customers are contracts for difference (CFD) and foreign exchange (forex) brokers and market makers.
NAB Adopts “No Appetite” for FX and CFD Trading
Yesterday, as Finance Magnates reported, the company also announced that it had entered into a number of new agreements with card schemes and other parties, to combat the upcoming termination of its cooperation with the National Australia Bank (NAB).
According to the statement, which was made on behalf of its Australian subsidiaries trading as ISXPay, NAB will no longer process payments for forex, CFD, equities, remittance and binary options traders as the bank has adopted a “no appetite” position for these trading sectors.