Financial Services

Identitii up over 20% as Rabobank Australia signs 5Y licence

Thu 16 Jun 22, 4:09pm (AEST)
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Key Points

  • Australian tech microcap Identitii will provide its international loan compliance software to Rabobank Australia into 2027
  • The software automates International Funds Transfer Instruction (IFTI) report submission to regulator AUSTRAC
  • Annual recurring licence fee of $100k with initial $80k payment

Microcap software player Identitii (ASX:ID8) is to receive $580k between now and 2027 from Rabobank Australia for the provision of automated reporting software. 

The company’s share price is up 22% on the news in mid-afternoon trade to 5.5c. 

The automated reporting process in question refers to IFTI reports, which Australian businesses are required to submit to AUSTRAC after transferring money overseas (or receiving it.) 

Rabobank retains right of renewal 

Following the conclusion of the 5Y licence, Rabobank Aus will have the option to extend the contract for another 12 months. 

Identitii reports strong interest in its cloud-based platform at home and overseas. 

How do IFTIs work? 

IFTI reports are submitted through AUSTRAC Online, which Identitii’s Software-as-a-Service (SaaS) licence will now see automated for Rabobank Australia.

The banking sector is required to send a high volume of IFTI reports on a week-to-week basis as international transfers are commonly sent between international jurisdictions in the normal course of business. 

Rabobank Australia is owned by Rabobank, a Dutch multinational with a focus on agriculture. 

Typical information included in electronic IFTI reports include the payer, payee, intermediaries, currencies, transaction dates, and relevant information. 

Identitii's executive summary of the current situation ISO 20022 intends to fix
Identitii's executive summary of the current situation ISO 20022 intends to fix

Upcoming international banking standards a driver 

Company management notes the international compliance space is growing ever-more stringent. 

While not immediately related to IFTI reports, Identitii also underscores an increasing level of global cohesion between financial institutions.

Banks around the world use different coding languages for secure messages between institutions authorising money and asset transfers, which can ultimately delay operational efficiency between players.

In November this year, a new compliance standard called ISO 20022 will be adopted by SWIFT, the global provider handling the majority of world banking transfers and activity. 

The US Fed will adopt the standard in late 2023. 

ID8's three month charts compared to the info tech index
ID8's three month charts compared to the info tech index

 

Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication. Email Jon at [email protected].

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