Online telephony company Dingo Blue has performed a swift side-step into the financial sector, forming an agreement with the Bank of Queensland (BOQ) for the provision of online financial services.
By the third quarter this year, the organisation plans to offer credit card services in conjunction with its existing telephony and internet products - local calls, long distance, mobiles and internet access.
Martin Paech, managing director of the eight month-old company, said the partnership will enable Dingo Blue to capture 45-50 per cent of a household's entire spend. "The financial services market will be a large market for Dingo Blue."
Additional services planned under the partnership with BOQ include transaction accounts, mortgage services and insurance. Paech said more services would continue to come online as more partnerships were formed.
According to Paech, Dingo Blue plans to offer its financial services under the same online model adopted for its telephony products. Users will be able to access their financial information online, check accounts and transactions online, transfer money electronically and in the future receive short message services detailing transactions on their Dingo Blue mobile phone.
BOQ chief executive, John Dawson, said that for BOQ the agreement is the bank's first move into the ecommerce world. "BOQ does not have an internet banking offering at the moment. We will ride on the back of this offer."
BOQ currently holds a 6-7 per cent share in the Queensland market, but is expecting to grow significantly through the partnership by expanding nationally. "(For BOQ), the partnership is about cross-selling . . . this is a way to take our initiatives to other markets."
Both Dingo Blue and BOQ plan to form more partnerships and Dingo Blue is also considering expanding beyond telecommunications and financials in the future.