ZipTel shareholders yesterday voted in favour of a proposal to acquire the issued capital of fintech Douugh. The company will change its business to focus on the activities of Douugh and seek readmission to the ASX as Douugh Ltd.

ZipTel (to be renamed Douugh) has issued a prospectus seeking up to A$6 million of equity capital. It has $725,000 of existing cash reserves.

Douugh describes its business as mobile-only “banking-as-a-service”. It is an open banking play, whose customers allow their banking data to be collected and analysed by Douugh, which then offers a range of budgeting and financial tools.

The company, which was incorporated in 2017, operates in the United States and plans to launch its business locally next year. In the US it works with a partner bank, Choice Bank, under an agency arrangement.

Its Australian partner bank is Regional Australia Bank.

Douugh was founded by Andy Taylor, a founder and co-CEO of SocietyOne.

The company is currently offering a free subscription to a pilot group of 1000 users. It hopes to move to a monthly fee some time in the next 12 months.

It also plans to earn revenue by charging transaction fees for card payments, brokerage fees on deposits and advisory fees.

The company has no plans to apply for an Australian banking licence. Instead, it will operate in the local market as an authorised representative of its partner bank’s Australian financial securities licence.