Stargroup - Signs 3 Year, $15M Cash Agreement and Reduce Costs
Stargroup Limited (ASX:STL) has announced a three year $15m financing agreement with Goldfields Money, which will lower operating costs for the Company. In addition, the partnership with Goldfields Money will also see the deployment of Stargroup ATMs across the Goldfields network. StarGroup intends to deploy recycler ATMs in Goldfields Money branches, which process deposits and 'recycles' it for instant use in withdrawals.
- Star Payment Systems signs a 3 year ATM Cash Convenience Agreement with Goldfields Money with an initial limit of $15million for its national ATM network which significantly lowers cash costs.
- Star Payments will provide Goldfields Money with its own state of the art ATM machines to service customers in remote locations where major banks have withdrawn banking services.
- Star Payments will install its “bank in a box” Recycler ATM in the Goldfields Money branches with the first installation scheduled for early October 2016.
- Stargroup to partner with Goldfields Money and roll out “Star labelled” financial products to its Customers.
Financial Technology and ATM machine company Stargroup Limited (ASX : STL) is pleased to announce that it has signed a 3 year, $15million ATM Bailment Service Agreement with emerging ASX listed Authorised Deposit-taking Institution (“ADI”) Goldfields Money (ASX : GMY).
Further, Stargroup is also excited to announce that it will be working closely with Goldfields Money to automate and improve its in-branch banking experience for its customers with the installation of the unique “bank in a box” ATM Recycler into the Goldfields Money branches. The first installation of the Recycler ATM (RATM) will be installed in Norseman in early October before a further rollout into strategic regional locations and other Goldfields Money branches.
Mr Todd Zani, Stargroup’s CEO and Executive Chairman said “This is a significant transaction for Stargroup and helps us significantly reduce our cost of funds. This is an excellent example of win : win business in that it represents a significant cost saving over our present cash bailment arrangement and is also a diversification of income for Goldfields Money in relation to its present activities.
Goldfields Money has stated it intends to become a bank that is recognized as the most valued financial services provider to their strategic partners and their mutual customers and we have made no secret of our desire at Stargroup to become the number one ATM and financial technology player in Australia.
This agreement and our commitment to work closely with Goldfields Money on other financial products will see us become a key player in both the “cash out” and “cash in” cycle within Australia. I am excited about the opportunity that these future projects will create for both Stargroup and Goldfields Money”, said Mr Zani.
Mr Simon Lyons, Goldfields Money’s CEO said “This is a fantastic opportunity for Goldfields Money. We recently announced that we were investing in digitising our back office and developing a banking platform to enable more effective third party distribution to existing and new distribution partners and we are excited to partner with Stargroup and roll out the RATM in our branches.
This branch automation technology which can be fully customised for our customers as a result of being able to directly work with Stargroup in our own backyard is truly a unique opportunity for Goldfield’s customers.
We have already seen tangible benefits of this project with an increase in customer numbers and funds on deposit. We are pleased to be able to use this new technology to service more remote communities.
Overall we see this collaborative approach whereby Goldfields Money populates a network of pre-agreed ATMs with our excess cash reserves, as a positive move for our remote customer base.
Importantly the returns are uncorrelated to the credit cycle, provide significant diversification benefits, enhancing our partnership with Star Payments and introduces no additional credit risk into the Goldfields Money balance sheet”, said Mr Lyons.