Goldfields Money completes capital raising

Goldfields completed the capital raising to institutional and sophisticated investors of 2,350,024 shares, at 90 cents per share, to raise gross proceeds of approximately $2,155,000.

The bank said in a statement that the funds raised will be used to increase its Common Equity Tier 1 capital to help facilitate more growth in its loan portfolio, as well as provide working capital to fund further expansion of the business.

Goldfields said the funds will also be used to digitise the company’s back office, develop a banking platform to enable more effective third-party distribution to new and existing distribution partners, and revamp the bank’s brand profile.

Simon Lyons, CEO of Goldfields Money, said the capital raising will allow the company to continue its transformation process as it aims to become one of Australia’s leading digital banks.

“Our aim is simple – we want to be recognised as the most valued banking services provider to our strategic partners and the mutual customers we share,” he said.

“We want to create a unique platform that delivers the best mix of traditional and innovative banking services to the market. We will continue to pursue the strategy of expanding our customer base by working with strategic partners to deliver the very best banking services in an innovative fashion.

“We also want to increase productivity and reduce our cost-to-income ratio by pursuing our digital-first strategy.”

Mr Lyons said Goldfields aims to build on its existing white-label partnerships with Firstmac and Pioneer Credit, and is working to finalise agreements with several new partners over the coming months.

“The board and management will also continue to explore opportunities to grow the loan book portfolio either by acquisition or through organic growth,” he added.

[Related: Goldfields Money partners with fintech provider]