Monday , October 26 2020
Home / Business / Australian banks dismiss concerns over links to collapsed German fintech Wirecard

Australian banks dismiss concerns over links to collapsed German fintech Wirecard

A spokesman for ME Bank said it used the software for debit and credit card management only and this was managed in-house. ME Bank said its customers and banking services would not be impacted by the scandal engulfing the German-based Wirecard.


“Reports that Wirecard are insolvent will not affect ME customers given ME has the contractual right to continue to use this software and appoint another service provider to support and maintain it,” the spokesman said.

Bendigo and Adelaide Bank also said it had a relationship with Wirecard but would not confirm if it used the Cadencie software.

“All Wirecard products are run on internal systems, managed by internal Bendigo and Adelaide Bank teams. We have measures in place to ensure ongoing operation of those systems,” a Bendigo spokesman said in a statement.

Westpac also has a small relationship with Wirecard but this did not include providing loans to the organisation. Westpac does not comment on vendor relationships but confirmed the dealings with Wirecard did not pose a material risk to the bank or its customers.

ANZ cut ties with Wirecard earlier in the year after it was involved in a fraud related to travel cards outsourced to the troubled company in February last year.

Big four firm PWC was the auditor for Wirecard’s Australian arm, Wirecard Australia A&I Pty Ltd, and lodged annual financial statements with the Australian Securities and Investments Commission for the company in May.

The financial statements show the company had recognised a loss for the year of $6,028,462 and PWC found it was reliant on its German holding company providing the necessary financial support to pay its debts.

The records show Wirecard’s Australian arm launched three capital raisings within the past 14 months, including the most recent on May 18 where directors approved 10 million shares at $1 per share to be allotted to Wirecard Acquiring & Issuing GmbH, the sole shareholder of the company that’s ultimate holding company is German-based Wirecard AG.

About admin

Check Also

Crennan first, Shipton next: Deeply flawed ASIC needs urgent cleanout

What is glaringly obvious is the government needs to step in and dust off the …