What you need to know about NAB’s $2 billion tech funding pledge
NAB wants to give emerging tech companies a "shot in the arm".
Big Four bank NAB has announced it will allocate $2 billion of funding over five years for technology companies with "demonstrated potential" to help them scale their businesses. The bank said the aim is to support emerging technology companies at a critical part of their lifecycle in order to ensure their growth.
"This commitment is about giving technology companies with demonstrated potential for growth the shot-in-the-arm they need to be bigger and better," NAB chief customer officer business and private banking Anthony Healy said.
"These tech-driven companies are often already profitable but need further capital and banking expertise to grow."
NAB will deliver $2 billion in financing over five years by providing loans, facilitating access to capital markets or offering companies transactional banking and risk management.
According to NAB, companies can be from any sector but need to have a "technology-enabled" business model. The company also needs to have high levels of medium-term potential and specific client needs and requirements will be considered case by case by NAB.
"NAB can support technology companies at every stage of their development – from NAB Ventures which backs starts ups through to big business. This now includes a new team focussed purely on high-growth technology companies. We believe this is a unique proposition from a major Australian bank," Healy said.
According to the bank, this commitment comes off the back of one of the recommendations made in the Australian National Outlook 2019 report, a collaboration between CSIRO, NAB and 20 other non-government organisations such as the Red Cross and Monash University.
"We have used the insights of the Australian National Outlook 2019 report to take action," Healy said.
The report recommended Australia make five changes across industry, the urban landscape, energy, land use and culture in order to secure a better future. The change in Australia's industry requires innovation and investment in areas of growth, which includes technology.