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New Zealand-based finance company Welcome has been granted a licence to take deposits from customers, alongside its mortgage financing options.
It is the first new non-bank deposit taker licence to be granted by the Reserve Bank in nearly a decade.
As a licensed non-bank deposit taker, Welcome would be able to offer a government guarantee of up to $100,000 per depositor per provider, when the depositor compensation scheme comes into effect in mid-2025.
Chief executive Anton Douglas said the licence required Welcome to maintain a minimum level of capital in the business.
"Our aim is to meet the needs of borrowers who don't fit into rigid bank protocols or don't get an answer quickly enough to move on an opportunity.
"Welcome will offer higher deposit rates than banks, with more certainty of returns and better protection than mortgage funds and unregulated wholesale alternatives," he said.
