ION Group is to install a new IT system for Italian digital challenger bank illimity and take a 9.99% stake in the lender.
Outlining a new four-year strategic plan, the bank says it aims to quadruple its net profit from an estimated €60-€70 million in 2021 to over €240 million in 2025 and to grow its customer base from 1.4 million to three million over the same timeframe.
Illimity reported a net profit of €31.1 million in it last set of full-year results for 2020.
The bank say a new IT platform licenced from ION Group will generate revenues of €90 million by 2025 through the provision of improved data anlytics, credit scoring and market intelligence. As part of the agreement, ION will also take up to a 9.99% stake in illimity through a capital increase for 5.75 million ordinary shares and warrants for a further 2.4 million shares.
The bank also intends to venture in to the small business banking arena with the launch in Q4 of B-Lity, a direct bank built specifically to handle the needs of Italian SMEs.