Australia's big banks have another challenger after South Africa's Investec announced plans to open a local branch following its successful application for a local licence.
Investec says it has Australian Prudential Regulatory Authority approval to carry on banking business in Australia and will, from July 1, operate as a foreign authorised deposit-taking institution (ADI).
"Investec has been operating in Australia for more than 20 years, but this is the first time it has been able to offer clients full access to its parent's balance sheet and specialist capabilities," Investec said in a statement on Thursday.
Investec joins the likes of HSBC and ING in challenging homegrown retail banks, which also face the rise of tech-driven neobanks such as 86 400 and Volt.
Investec, which is listed in Johannesburg and London, already works in Australia across sectors including resources, private equity and property.
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"The move is transformational as we will now be able to provide clients with greater international reach, a stronger balance sheet, and access to deeper pools of expertise," Investec Australia chief executive Milton Samios said.
