Strategic Merger Proposal
SME BankA Transformational Opportunity to Create Australia's Premier Digital SME Banking Platform
SME BankStrategic Merger Proposal
in1bank + SME Bank
A Strategic Merger to Create Australia's Leading Digital SME Bank
Executive Summary
Immediate access to APRA-ready banking infrastructure and compliance framework
Absorption of $25-42M in developed platform value and intellectual property
30+ years of SME lending expertise and proprietary credit assessment technology
Combined addressable market of $2+ trillion in Australian business banking
Proposal: 30-35% equity stake for SME Bank shareholders in merged entity
The Opportunity
SME Bank presents a unique, time-sensitive acquisition opportunity that solves critical challenges while unlocking significant growth potential.
SME Bank: Assets & Capabilities
Regulatory Infrastructure
- Satisfied APRA challenge meeting requirements
- Complete ADI application framework
- Comprehensive compliance policies & procedures
- Established governance structures
Technology & IP
- Proprietary credit assessment platform (Guardian/Gatekeeper)
- World-class core banking technology integration
- Bespoke multi-asset credit line blending software
- Business Centre self-service platform
Market Expertise
- 30+ years SME lending experience
- Established credit history and risk models
- Comprehensive product design for $0-100M+ businesses
- BaaS/BaaP partnership frameworks
Human Capital
- Experienced executive team with banking pedigree
- Board with deep Australian banking expertise
- Established operational procedures and training
- Nomura Holdings strategic backing
Platform Valuation Overview
Combined Market Opportunity
Market Dynamics
Combined Entity: 5-Year Targets
Key Assumptions
Proposed Transaction Structure
Key Terms
SME Bank shareholders receive 30-35% ownership of combined entity
in1bank absorbs all SME Bank assets, IP, policies, and procedures
SME Bank investor pipeline gains immediate access to licensed ADI
Unified governance structure with board representation
Integration of all SME Bank technology and human capital
Risk Management
Integration Complexity
Experienced teams, proven technologies, clear integration roadmap
Regulatory Approval
Both entities have strong APRA relationships, transparent communication
Cultural Alignment
Shared SME banking focus, complementary capabilities, unified vision
Technology Integration
Modern architectures, experienced IT leadership, phased approach
Recommended Next Steps
Board approval and shareholder mandate
Formal due diligence initiation (expedited process)
Legal documentation and transaction structure finalization
APRA consultation and notification
Shareholder communication and approval process
Integration planning and team alignment
Combined fundraising strategy launch
Conclusion
This merger represents a rare opportunity to combine complementary strengths, eliminate redundancy, and create a premier digital SME banking platform with immediate credibility, reduced risk, and accelerated path to market.
Key Highlights
Immediate regulatory and compliance value
Combined $2T+ addressable market
Proven technology and expertise
Capital efficient structure
Strong alignment of shareholder interests
Together, we create Australia's premier digital SME banking platform.