Coles after bank licence

Coles wants to add banking to its financial services rollout.

Coles is seeking a formal banking licence so it can add savings accounts to its existing financial services products, The Australian Financial Review reports.

According to the newspaper, the retailer is in the process of obtaining an Authorised Deposit-taking Institution licence from the Australian Prudential Regulation Authority.

This would allow it to take deposits in its own name rather than in partnership with a bank.

Coles' parent Wesfarmers (WES) is likely to hold the licence under a non-operating holding company structure such as the one Suncorp uses to separate its banking and insurance operations, the AFR reports.